Chrysler denies bankruptcy rumors

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

Tech & Money on

What's most stressful about back-to-school?

Help your child be a smart spender

Missing out on huge coupon savings?

Save money on healthcare costs

5 ways to cut prescription costs

Tech it Out! with Paul Hochman

Heavy load? Best backpacks for kids

Survive the drive! Gear for kids

Great tech for a 10-second commute

Get educated! Latest back-to-school gear

Money Matters with Jean Chatzky

Protect your 'legacy' for years to come

5 tips to forestall a foreclosure

Need some cash? Don’t raid your savings

5 tips to combat financial stress

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 ↓

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.