Having failed to make a deal with the creditors to which it owes some $7 billion, Chrysler will declare Chapter 11 bankruptcy later today, a White House official tells CNN. The filing does not mean the company will cease operations—rather, it represents an opportunity to execute a merger with Fiat. President Obama expressed optimism during last night's press conference "that we can see a resolution that maintains a viable Chrysler auto company."
Chrysler failed to meet today's Treasure Department deadline to put its house in order because it was unable to convince some smaller creditors to accept less than the company owed to discharge its debt. "After a month of tireless negotiations, the Administration went into yesterday afternoon with the full support of Chrysler's key stakeholders, including the UAW and the largest creditors. That support remains," said a White House official.