The scenario I read in WSJ that made the most sense was that the vcap guys would carve Chrysler up thusly:
Jeep to Honda
Dodge truck to Nissan
Cars to a China buyer (they make a heroic appearance to save an American icon from extinction)
Chrysler's pension fund is overfunded. The health care liabilities would be paid off fractionally to the union as Goodyear has just done - with the alternative being Chap 11 and take your chances.
I know it's just sentimentality but I'd hate to see Chrysler go out that way.