US,Chrysler lender talks break down

According to people familiar with the matter,the talks broke down despite a revised offer from the Treasury of $2.25 billion to forgive $6.9 billion in Chrysler debt,up from its previous proposal of $2 billion,the WSJ said.

Chrysler has until the end of the day on April 30 to slash its labor and debt costs,and consummate an alliance with Italian automaker Fiat SpA.

Failure to do so means further emergency government aid for Chrysler will be withheld.