Chrysler LLC’s biggest lenders and the U.S. government have reached a deal to cut the company’s debt by $6.9 billion, official said on Tuesday.

The deal would eliminate Chrysler’s debt in return for $2 billion in cash, Reuters reported, citing a source.

More than 40 lenders were performing due diligence on the terms of the deal, another source with knowledge of the banks’ review said.

Banks included in the deal are JPMorgan Chase & Co, Goldman Sachs Group Inc, Morgan Stanley and Citigroup Inc.