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Chrysler LLC could be forced to file for bankruptcy as early as this week, despite agreement by the automaker's major creditors to forgive much of its debt.

The White House praised the agreement, but it pointedly wouldn't rule out bankruptcy. "There's still some ways to go in these negotiations. So I wouldn't rule anything in or out," White House spokesman Robert Gibbs said Tuesday.

Four principal banks that hold about 70 percent of the automaker's secured debt, including J.P. Morgan, Citibank, Goldman Sachs and Morgan Stanley, have agreed in principle to accept $2 billion in cash for $6.9 billion in secured debt, according to people familiar with the matter.


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Bail Out Or Not Chrysler May File For Bankruptcy This Week

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