Embattled US car firm Chrysler will file for Chapter 11 bankruptcy protection in the US later today after talks aimed at restructuring its debt collapsed.
According to a US government official, Chrysler failed to gain the bondholder support it needed to move forward without a restructuring.
Chapter 11 gives the manufacturer protection from its creditors and time to rearrange its finances under a court order, while allowing it to continue to trade.
The move does not mean that the proposed deal with Fiat can not go ahead.
Chrysler, which split from a union with Daimler in 2007, is owned by private equity firm Cerberus Capital Management and has received $4.5 billion in loans from the US government since the beginning of the year.
Chrysler files for Chapter 11 bankruptcy protection
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- 30 April 2009
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