Chrysler Bankruptcy Plan Would Oust CEO

[MadBadger]

Chrysler chief executive Robert Nardelli would be replaced by the management of Italian automaker Fiat under a bankruptcy plan that the United States is preparing for the storied automaker, sources familiar with the matter said.

While the government is holding out hope that the bankruptcy could be averted at the 11th hour, the administration has detailed plans in which the ownership of Chrysler would be dramatically reordered and the company would receive billions more in aid from the United States and Canada, where the company has substantial operations, industry sources said.

These governments would provide about $4 billion in new funds while Chrysler is in bankruptcy, with 80 percent of the funds coming from the United States and 20 percent from Canada, the sources said.

As the company emerges from its reorganization, the United States would provide roughly another $5 billion, with more coming from Canada, the sources said.

These sources warned that the figures were fluid and that the plan was still being finalized

MORE: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/29/AR2009042902665.html?hpid=topnews