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| Chrysler approaches key deadline | Chrysler approaches key deadline |
| (41 minutes later) | |
| Chrysler is just hours away from a deadline that could force it to file for bankruptcy protection. | Chrysler is just hours away from a deadline that could force it to file for bankruptcy protection. |
| Continuing efforts to restructure the business focus on persuading its main lenders to write off its debts, but reports say these talks have stalled. | Continuing efforts to restructure the business focus on persuading its main lenders to write off its debts, but reports say these talks have stalled. |
| Chrysler is also continuing discussions to form an alliance with Fiat, another key demand of the US government. | Chrysler is also continuing discussions to form an alliance with Fiat, another key demand of the US government. |
| President Barack Obama said Chrysler could emerge stronger afterwards if a bankruptcy filing proved necessary. | President Barack Obama said Chrysler could emerge stronger afterwards if a bankruptcy filing proved necessary. |
| "It would be a very quick type of bankruptcy and they could continue operating and emerge on the other side in a much stronger position," he said. | "It would be a very quick type of bankruptcy and they could continue operating and emerge on the other side in a much stronger position," he said. |
| Government assistance | Government assistance |
| The US government has told the carmaker it would be given a further $6bn (£4bn) of vital state loans if the restructuring is completed by 30 April. | The US government has told the carmaker it would be given a further $6bn (£4bn) of vital state loans if the restructuring is completed by 30 April. |
| BANKRUPTCY PROTECTION US bankruptcy protection is called Chapter 11It gives US businesses time to rearrange their finances while continuing to trade, protected from their creditors | |
| So far Chrysler has managed to persuade its main union to back the restructuring and agree a cost-cutting deal. | So far Chrysler has managed to persuade its main union to back the restructuring and agree a cost-cutting deal. |
| The sticking point remains whether the carmaker can persuade its main lenders to accept $2bn in cash in exchange for writing off all of Chrysler's $6.9bn secured debt. | The sticking point remains whether the carmaker can persuade its main lenders to accept $2bn in cash in exchange for writing off all of Chrysler's $6.9bn secured debt. |
| The company, the smallest of the US "Big Three" carmakers after General Motors (GM) and Ford, secured a $4bn loan from the US government in January, and has since gained $500m more. | The company, the smallest of the US "Big Three" carmakers after General Motors (GM) and Ford, secured a $4bn loan from the US government in January, and has since gained $500m more. |
| GM has also received multi-billion government loans. While Ford has yet to require any money, the government has agreed to give it financial support, should it be needed. | GM has also received multi-billion government loans. While Ford has yet to require any money, the government has agreed to give it financial support, should it be needed. |
| All three firms have seen sales slump in their home market as the recession has intensified. | All three firms have seen sales slump in their home market as the recession has intensified. |