Chrysler creditor deal confirmed

While there has been no official comment from Chrysler, a senior official in the Obama Administration confirms that Chrysler has reached a deal with its major creditors to write down a significant portion of its $6.9 billion in debt. and qualify for up to $6 billion in government loans.

“The agreement from Chrysler’s principal banks is an exceptional accomplishment in line with the President’s firm commitment that all stakeholders sacrifice to make this deal succeed,” the official said.

The agreement, along with new labor agreements from the UAW and CAW, should also clear the way for Chrysler to finalize its alliance with Fiat SpA.