With reports circulating that Chrysler will file for Chapter 11 bankruptcy on Thursday, President Barack Obama has planned to address the fate of the beleaguered auto maker at noon Eastern time.

Chrysler could not immediately be reached for comment as to whether the bankruptcy reports are true.

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As part of Chrysler’s agreement with the U.S. government to remain viable and healthy, Chrysler was given a deadline of Thursday at 11:59 PM to reduce its debt and partner with another company. Chrysler made great strides in the 48 hours leading up to the deadline, but it is unclear if those efforts will save the company from a bankruptcy filing.

On Wednesday, reports circulated that Chrysler had finalized a partnership with Italian auto maker Fiat SpA. Chrysler had no comment on the situation, but on Thursday morning, Chrysler’s Chief Executive Bob Nardelli sent a memo to staff addressing the Fiat partnership that was obtained by Reuters.

“With the guidance of the U.S. Treasury, we also continue to work with our lenders to establish a level of debt that would be serviceable under the proposed Fiat alliance,” Nardelli said in the memo.

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Additionally, the offer made to Chrysler’s lenders by the U.S. Treasury was upped on Wednesday by $250 million to $2.25 billion in cash, with the stipulation that the remaining $6.9 billion worth of Chrysler’s secured debt be written off.
“The agreement of all lenders continues to be a critical factor in our ability to meet government requirements and as such, remains our focus in the successful completion of our restructuring efforts,” Nardelli told staff members in the note.

Chrysler, which is the third largest automaker in the nation, continues to receive support for its potential reorganization from the United Auto Workers Union which ratified its new agreement with Chrysler on Wednesday.