Chrysler Denies Rumors of Bankruptcy Filing

June 26, 2008 2:19:52 PM PDT
Chrysler says it isn't so. A spokeswoman for the automaker says speculation the company plans to file for bankruptcy protection is not true.

Shawn Morgan says the speculation is false and without merit and that the rumors do not reflect the privately owned company's financial situation.

The speculation apparently originated in Europe and followed Tuesday's action by Chrysler to exercise a 2-billion-dollar line of credit from Cerberus (SUR'-bur-uhs) Capital Management and Daimler.

Morgan says Chrysler had to borrow the money before August 3rd under terms of Cerberus's purchase of an 80 percent stake in Chrysler from Daimler in August of last year.