Chrysler is still preparing for bankruptcy in case the Treasury's last-minute negotiations with hesitant creditors crumble, the Wall Street Journal reports. Most big lenders have agreed to write down part of Chrysler’s debt in exchange for stakes in the company, but smaller hedge funds also have to agree for the deal to move forward. President Obama is pressuring the creditors to concede.
"Are the bondholders—the lenders, the money people—are they willing to make sacrifices as well," Obama said, lauding union workers for making a cost-cutting deal. "It seems bankruptcy is the most likely option here," says a source briefed on today's negotiations.