After several attempts by the Treasury Department for smaller lenders to reduce the amount of debt Chrysler owed them, an Obama administration official confirmed today that Chrysler LLC, will file for bankruptcy.
The confirmation comes during Chrylser's deadline to negotiate a $7billion dollar debt, which had previously been loaned to the auto giant. After reduction from major banks such as Citigroup and JP Morgan Chase, their debt was only reduced to $2.25b.
The administration official went on to add that the failure to act by all other key stakeholders would not diminish the accomplishments made recently between Fiat and Chrysler. He also noted Chrysler would emerge "stronger going forward".