Chrysler debt deal reached, bankruptcy may now be avoided – Apr. 28, 2009
The major banks that loaned Chrysler LLC about $7 billion have agreed to significantly reduce that debt, according to the Treasury Department, a move that could save the struggling automaker from having to file for bankruptcy later this week.
“The agreement from Chryslers principal banks is an exceptional accomplishment in line with the Presidents firm commitment that all stakeholders sacrifice to make this deal succeed,” said an administration official Tuesday.
The company still needs to win a rank-and-file ratification vote Wednesday of a tentative labor deal reached with leadership of the United Auto Workers union late Sunday, and wrap up an alliance with Italian automaker Fiat before the Thursday deadline set out by the federal government.
via Chrysler debt deal reached, bankruptcy may now be avoided – Apr. 28, 2009 .