Chrysler talks go down to the wire today

— -- U.S. automaker Chrysler on Thursday either heads for bankruptcy court or delivers a plan to create a viable business outside bankruptcy court.

The company, its bondholders and others involved in intense negotiations have until 11:59 p.m. ET to come up with a viability plan that suits the Treasury Department, which then would lend Chrysler more money to keep operating. Chrysler is surviving on a $4 billion government loan.

A person familiar with the negotiations, who did not want to be identified because the negotiations are not public, said, "Chrysler will survive and avoid liquidation. Whether that happens in or out of bankruptcy remains uncertain at this point."

In a press conference Wednesday night, President Obama said he is "very hopeful" that Chrysler will remain "a "going concern," and that if it has to go through Chapter 11 reorganization, it would be "quick."

Chrysler cleared one hurdle Wednesday night: United Auto Workers overwhelmingly approved concessions that meet Treasury requirements for continued loans to the automaker. The approval had been expected. Canadian Auto Workers had already ratified the concessions.

Still unresolved: Will Chrysler's remaining bondholders agree to cut its debt?

Monday, Treasury offered $2 billion cash for all of Chrysler's $6.9 billion debt and got the major holders to accept. Wednesday night, Treasury boosted that to $2.25 billion spread among all, hoping to sway holdouts, according to another source briefed on the negotiations, who declined to be identified because the talks aren't public.

A key piece of Chrysler's survival plan is a partnership with Fiat. The Italian automaker has agreed to provide Chrysler with fuel-efficient small cars and the technology to build them in the U.S. in return for a 20% stake in Chrysler. That could grow to 35% under certain conditions.

The plan calls for Fiat to contribute no money, but some Chrysler bondholders want Fiat to kick in cash.

Fiat, like many recession-slammed automakers, has its own financial issues. Rating service Standard & Poor's last month downgraded Fiat bonds to junk status because of Fiat's debt load.