Chrysler LLC one of US Big three is sure to file bankruptcy according to Wall Street Journal. WSJ says if the deal goes through Chrysler will file for Chapter 11 or Govt controlled(protected) bankruptcy, in which case all but few plants will be kept with Chrysler and rest will be auctioned. Fiat will sign the deal with the leaner chrysler.
If the deal doesnt go through as expected then Chrysler will file for Chapter 7 (or liquidation) where all of chrysler assets will be sold to bidders. The biggest asset as considered by most analysts is its Jeep Brand (Which chrysler bought from another Bankrupt firm ie American Motors).
US Treasure and Chrysler has negotiated a deal with UAW and CAW on the lines of Chapter 11 proceedings.Also Treasury has announced they have started preparing for Chapter 11 and Chapter 7 as due diligence.