Scrambling, GM Offers Equity for Debt
Wagoner needs strategy to win federal aid by Tuesday
By Mary Papenfuss,  Newser User
Posted Nov 30, 2008 7:24 AM CST
The GM logo hangs over an unsold 2009 Acadia sports-utility vehicle on the lot at a GMC Truck dealership in a Denver suburb.   (AP Photo/David Zalubowski, File)
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(Newser) – GM officials are pushing bondholders to swap out the debt they hold for equity in the troubled corporation, reports the Wall Street Journal. The unique strategy represents a last-ditch attempt to stave off creditors and obtain federal aid to survive. A debt swap could leave unsecured debtholders with major losses. Many bonds have been trading at a fraction of face value, indicating investors aren't confident GM can meet its debt obligations. GM must come up with a plan for federal aid by Tuesday.