Chrysler LLC is facing “no pending bankruptcy,” Vice Chairman Jim Press told the company’s auto dealers in a conference call Friday, according to three people who listened in on the call.
Mr. Press told dealers that nothing will be announced prior to late next week, when the latest federal deadline imposed on the company hits.
Mr. Press added that “nothing has changed” in regard to Chrysler’s plans to restructure outside of bankruptcy court and forge an alliance with Italy’s Fiat SpA, those people said.
The Obama administration has given Chrysler until Thursday to broker a deal with all stakeholders, including lenders and the United Auto Workers union. Much progress still needs to be made, however.
Mr. Press did hedge his bet on bankruptcy, however. He told dealers that if concessions cannot be obtained from all parties involved in the talks, bankruptcy may be necessary, the people on the call said. A Chrysler spokesperson could not immediately be reached for comment.
The WSJ also reports that Chrysler is preparing a bankruptcy filing >
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