Chrysler LLC reportedly reached a deal Tuesday with its creditors to write off nearly 7 billion dollars in debt, just days before a government ultimatum for the ailing US carmaker to restructure or face bankruptcy, according to dpa. In a deal brokered by the Treasury Department, bank representatives have agreed to forgo 6.9 billion dollars in debt in exchange for 2 billion dollars in cash, Bloomberg News reported, citing unnamed government officials. Chrysler spokeswoman Shawn Morgan would not comment on the report. The carmaker faces a deadline of Thursday to prove its viability, or lose some 4.5 billion dollars it has received in emergency government loans and be forced to file for bankruptcy. General Motors Corp, the largest US carmaker, faces its own June 1 deadline to restructure. The company offered its own deal to bondholders on Monday, exchanging debt for a 10-per-cent stake, but it is not clear whether creditors will agree to the terms.
