Corporate Bankruptcy
Chrysler Files Chapter 11 Bankruptcy, Forms Alliance With Italian Automaker Fiat SpA
May 14, 2009
Stock image
24 of Chrysler's 32 manufacturing and
assembly facilties are located in the U.S.
Chrysler LLC, the third largest U.S.-based auto maker, filed for Chapter 11 bankruptcy on April 30th in an unorthodox government-led bankruptcy in which the U.S. Treasury will contribute some $3.3 billion and the company's labor union will become majority owner.
Chrysler LLC and 24 of its wholly owned U.S. subsidiaries filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Southern District of New York even though Chrysler is headquartered in Auburn Hills, Michigan. But in an unprecedented move as bankruptcies go, it was the President of the United States, Barack Obama, not the CEO of Chrysler, Robert Nardelli that made the announcement.
