President Obama said Chrysler failed to reach an agreement with all of its secured creditors, forcing the carmaker into a Chapter 11 bankruptcy filing.

Obama said Chrysler had come to terms with Fiat for a broad partnership that could allow the Italian automaker to take majority control of Chrysler.

The president said creditors led by JPMorgan had agreed to exchange their secured loans in return for cash equating to about 30 cents on the dollar. But a handful of hedge funds and “speculators” refused to accept those terms.

“I don’t stand with them,” Obama said, referring to the holdout creditors.

• Statement from non-Tarp lenders to Chrysler
• Fiat alliance announcement
• Chrysler bankruptcy filing (PDF)
• Obama administration Chrysler plan
• Remarks by President Obama on auto industry

29 Apr 2009 -

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