Reuters is reporting that Chrysler, LLC. is headed to bankruptcy after several holders of secured debt refused the Treasury/TARP banks/Chrysler last offer of $2.25 billion in cash in exchange for retiring the $6.9 billion in secured debt. As I noted last night, it’s a risky proposition for both the hedge funds thinking they’ll do better than the 32.6 cents on the dollar they would have received in the cramdown (sources say that in a liquidation they’d get closer to 50 cents on the dollar) and the Obama administration/UAW/Fiat plan to turn Chrysler into UAW Motors presented by the United States Government as it goes to the whims of a judge.