According to three sources briefed on the deal, Fiat will sign paperwork by Thursday and will finalize its partnership with Chrysler LLC. Sources say that Chrysler could file for a short bankruptcy if four dozen lenders don’t agree to the banks’ terms.
Following concessions from the CAW and UAW along with reduced debt from its lenders, the partnership is the last step for Chrysler in order for it get additional government loans from the U.S. Treasury Department.
The United Auto Workers are expected to ratify their cost-cutting contract later tonight.
– By: Omar Rana