Lenders let Chrysler join aid program

Chrysler LLC's secured lenders agreed to allow the automaker to participate in a US aid program for suppliers, signaling that banks aren't gearing up for a liquidation, a person familiar with the situation said.

The banks could have stopped Chrysler from taking part in the $1.5 billion program if they believed the company would liquidate, because it would require the automaker to spend as much as $75 million of its cash reserve, said the person, who asked not to be identified because the matter is private.

"That's a good sign," said Don Workman, a bankruptcy attorney with Baker & Hostetler in Washington. "From Chrysler's perspective, it indicates there is something for them down the road. There's cooperation to be had with the secured lenders."