DETROIT (AP) - General Motors Corp. says not enough of its
bondholders agreed to swap their debt for company stock, meaning
the automaker is almost certainly headed for bankruptcy protection.
GM has until Monday to finish restructuring or file for Chapter
11. But the company says its offer to exchange $27 billion in
unsecured debt for 10 percent of the company's stock had failed.
GM has received $19.4 billion in federal loans. The Monday
deadline was set by the goverment and includes debt reduction,
labor cost cuts and plant closures.
GM has said it needed bondholders representing 90 percent of its
unsecured debt to agree, or it would file for Chapter 11
The Obama administration had said it would only provide GM more
funds if bondholders and union workers made concessions.
GM got union concessions but the bondholders held out.