The Washington Post reported earlier today that the U.S. Treasury has reached an agreement with Chrysler’s lenders that could help the struggling Auburn Hills automaker avoid bankruptcy.

The report said that Chrysler’s fist-lien lenders, who were owed $6.9 billion in secured loans, have agreed to write down the debt to $2 billion.

Details of the deal were not immediately available. We’ll have more official details from Chrysler shortly.

- By: Omar Rana

Source: Reuters