Chrysler Creditors Strike Deal to Avoid Bankruptcy

The Treasury Department struck a deal with Chrysler’s creditors last night to avoid what had looked like a probable bankruptcy, the Washington Post reports. The creditors, a disparate group of 45 financial firms, agreed to write down all but $2 billion of the $6.9 billion Chrysler owes them, in exchange for a 10% stake in the automaker.

Creditors had been looking for far more money—so much so that one official said it would take a “miracle” to get a deal done—but they eventually realized that they’d make less in bankruptcy court. Chrysler’s restructuring is now all but settled; a deal is in place with the United Auto Workers to give the union 55% of the company in exchange for cost concessions, with the remaining 35% tentatively going to Fiat. (More Chrysler stories.)