Update: WSJ now reports that there’s still a chance of a last minute change and that Obama is readying two versions of a speech.

Original post: President Obama will declare Chrysler bankrupt tomorrow, reports Bloomberg.

The story is breaking right now and hasn’t been on the major media yet. Not clear if it could disrupt this huge rally we’re seeing.

The news may not be as big of a deal as it seems. Although Chrysler has come up with a restructuring agreement with bondholders, not everyone has agreed to the deal.

As this Detroit News piece explains, a Chapter 11 bankruptcy may be more of a legal technique to force the straggling bondholders to come along. It does not mean that the Fiat deal is dead or that Chrylser is set to liquidate.

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