Chrysler to file for bankruptcy | autos | Hindustan Times
Today in New Delhi, India
Jul 26, 2017-Wednesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Chrysler to file for bankruptcy

Chrysler, the company that makes Dodge, Jeep and Chrysler vehicles, was set to file for bankruptcy after some of its creditors refused to accept Treasury Department proposals to reduce the company’s $6.9 billion in secured debt.

autos Updated: Apr 30, 2009 23:37 IST
V Krishna & Agencies

Chrysler, the company that makes Dodge, Jeep and Chrysler vehicles, was set to file for bankruptcy after some of its creditors refused to accept Treasury Department proposals to reduce the company’s $6.9 billion in secured debt.

Chrysler is the smallest of the Big Three US automakers.

Later, President Barack Obama announced a merger between Chrysler and Italy’s Fiat which he said has “a strong chance of success” as the stricken US auto giant heads into bankruptcy.

A bankruptcy does not mean the company will shut down.

In a so-called Chapter 11 bankruptcy, a reorganisation plan is presented to a judge, who must approve it. The judge decides how much the company will pay creditors.

Chrysler, founded by Walter Chrysler on June 6, 1925, was once known for engineering innovations.

Between 1998 and 2007 the company went through a merger with Germany’s Daimler.

Incidentally, till well into his presidential campaign, Obama used to drive a big, fast and fuel-guzzling Chrysler 300C. It was later replaced by a politically correct Ford Escape Hybrid sports utility vehicle.