Chrysler denies bankruptcy rumors

Reports began in Europe after automater exercised $2 billion credit line

Interactive

Most reliable cars
J.D. Power’s 2009 Initial Quality Study shows the quality of vehicles built for American consumers has improved this year, but imported brands are still top of the list.

Most popular

• Most viewed

• Top rated

• Most e-mailed

Boy survives 8-mile river ride on toy truck

She lost 112 pounds — and gained a bikini-bod

‘Miracle’ girl’s heart heals itself after transplant

Income gaps, corruption fuel China riots

Proposed smoking ban angers some in military

Most viewed on msnbc.com

updated 3:58 p.m. ET June 26, 2008

AUBURN HILLS, Michigan - A Chrysler LLC spokeswoman says speculation the company plans to file for bankruptcy protection is not true.

The rumors were so prevalent Thursday that the company was forced to issue a statement.

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

Story continues below ↓

advertisement | your ad here

The rumors apparently originated in Europe and follow Tuesday's action by Chrysler to exercise a $2 billion line of credit from Cerberus Capital Management LP and Daimler AG.

Morgan says the Auburn Hills, Michigan-based automaker had to borrow the money before Aug. 3 under terms of Cerberus' purchase of an 80 percent stake in Chrysler from Daimler in August of 2007.