Chrysler bankruptcy plans drawn up

Unable to corral the Detroit company's creditors into a deal to save Chrysler out of court, the task force members were striving to come up with a bankruptcy plan by Monday, unnamed sources told the Washington Post.

The creditors -- made up of 45 banks, hedge funds and financial firms -- hold $6.9 billion in Chrysler debt. The White House is reportedly determined to send the company to bankruptcy court by May 1 if no deal is reached. Sources told the newspaper the U.S. Treasury Department and creditors were still far apart, adding it would take "a miracle" to get the sides together by the deadline.

Anxiety was rising among Chrysler's 54,000 employees Friday as the fate of the 84-year-old automaker hung in the balance, the newspaper said. The Obama task force was expected to negotiate with the company's creditors and unions through the weekend to come up with a formula that would allow it to survive through a
proposed takeover by Italian automaker Fiat.

Copyright 2009 by United Press International.