As talks with debtholders have broken down, Chrysler LLC will become the first of the "Big Three" American automakers to file for Chapter 11 bankruptcy. The White House all but confirmed the impending action Thursday morning announcing that President Obama and members of the auto task force would address the fate of the company at noon.

According to individuals briefed on the talks, last minute efforts by the Treasury Dept. to win over Chrysler debtholders failed Wednesday night. Barring a last minute agreement, Chrysler is now expected to seek Chapter 11 protection, and most likely in New York.

Chrysler is also in talks with the Italian automaker Fiat. They would, however, file for bankruptcy first, and then subsequently would present an agreement with Fiat to the court for approval. This could possibly take place on Monday, according to the sources speaking with the media.

Chrysler's bankruptcy filing could serve as a preview as to what a General Motors filing might look like. GM, like Chrysler, received federal assistance last year and now faces a June 1 deadline for restructuring.