Canada, Ontario governments to help refinance Chrysler: report

Thu Apr 30, 2009 7:52am EDT
 
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(Reuters) - Canadian and Ontario governments will help refinance Chrysler to ensure that the U.S. automaker's Canadian subsidiary will not be separately placed in bankruptcy protection, The Globe and Mail reported on its website, citing sources close to the negotiations.

However, Ottawa will refuse to participate in the debtor-in-possession financing if the automaker fails to clinch a deal with Fiat, the paper said, citing federal sources.

Italian newspaper Corriere Della Serra reported Thursday morning that a deal with Fiat had been signed, but Fiat later denied this.

Chrysler has until Friday to reach agreement with Fiat on a survival deal.

(Reporting by Jennifer Robin Raj in Bangalore; Editing by Lisa Von Ahn)