Several major banks face exposure to automaker Chrysler LLC, which may need to file for bankruptcy if it doesn’t come through with a plan that will convince the U.S. government to lend it additional funds to stay afloat.

JPMorgan has about $2.5 billion in total exposure to the business, the report states, citing sources familiar with the credit group. Citigroup has under $1 billion, a source said. Goldman Sachs sold some of its loans last year, a source previously told Reuters.

Banks are in talks with the government about reducing the company’s debt by changing some of it to equity, new debt, or taking less cash, sources familiar with the talks told Reuters.

In a bankruptcy, their “senior secured” debt is the highest priority, meaning they would be paid first in a bankruptcy. However a source told the news agency that given the complexity of the company’s problems, it is unlikely to be a normal bankruptcy.

Other debt includes a $2 billion lien loan held by Daimler and Cerberus. The U.S. Treasury holds a third lien loan of $4 billion and an obligation to fund the company’s employee retirement plan.