NPR's Don Gonyea and Frank Langfitt have confirmed that Chrysler will file for bankruptcy. They're sourcing it to a senior administration official. Details to follow.
The government had long hoped to stave off bankruptcy for Chrysler, but negotiations with hedge funds that hold its outstanding debt crumbled overnight.
President Obama is expected to address the nation about the matter at noon today. Meanwhile, the Detroit Free Press notes that the bankruptcy comes after workers agreed to concessions in benefits and pay. In the end, it appears that the parties who'd loaned Chrysler money weren't willing to accept an offer of $2 billion in cash to settle $6.9 billion in debt. Says the paper:
Of 46 firms, the three holdouts -- Oppenheimer Funds, Perella Weinberg Partners, and Stairway Capital -- had balked at the original $2-billion offer, as well as an increase of $250 million from Treasury on Wednesday evening.