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Chapter 11

Chrysler Dodges Bankruptcy

Lenders and Treasury reach agreement.

PT Cruiser enthusiasts rejoice! Chrysler, it seems, isn’t going belly-up after all: Reuters is reporting that the Treasury reached an agreement with Chrysler’s lenders to help the automaker avoid bankruptcy, according to a source. Details are not immediately available, but Chrysler’s first-lien lenders, who owed $6.9 billion in secured loans, have agreed to write down the debt to $2 billion according to The Washington Post. Chrysler faces an April 30 deadline to complete an alliance with Fiat, and has already agreed with the United Auto Workers to modify the union’s labor contract.

Read it at Reuters

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