UPDATE 1-Chrysler headed to bankruptcy to finish overhaul


* Talks with Chrysler debt holders break down * Chrysler, Fiat alliance still key * Obama to issue statement on Chrysler (adds debt details, Fiat alliance) WASHINGTON, April 30 (Reuters) - Chrysler LLC will proceed with Chapter 11 bankruptcy protection to complete its restructuring after attempts to reach concessions with lenders faltered, an administration official said on Thursday. The U.S. Treasury had been in tense negotiations with a small group of hedge funds to wash out its ...

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