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The U.S. Treasury reached an agreement with Chrysler LLC's lenders that may help the troubled automaker avoid bankruptcy, a source briefed on the matter said on Tuesday.

The details of the deal were not immediately available, the source said.

Chrysler's first-lien lenders, owed $6.9 billion in secured loans, have agreed to write down the debt to $2 billion, the Washington Post reported earlier on Tuesday.


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Treasury Department Steps In And Assists Chrysler And Lenders Reach Agreement

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