Gov't Preparing For Chrysler Bankruptcy Filing

NYTimes:
The Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as next week, people with direct knowledge of the action said Thursday.

Here's the interesting part:

The Treasury has an agreement in principle with the United Automobile Workers union . . . Moreover, Fiat of Italy would finalize its alliance with Chrysler while the company is under bankruptcy protection. The only major question that remains unresolved is what happens to Chrysler’s lenders, who hold $6.9 billion in company debt.