Scrambling, GM Offers Equity for Debt

Execs say that's 'way down the list,' but Detroit desperate for federal bailout

(NEWSER) - Bankruptcy is officially on the table for General Motors and Chrysler, a source tells Bloomberg. The companies may accept a pre-packaged bankruptcy, which would force the union and creditors to make concessions, in order to get government help. At least three congressmen have had their staffs explore the possibility. GM CEO Rick Wagoner has argued against bankruptcy, saying it would force the company to liquidate. More»

(AP) - General Motors says not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost certainly headed for bankruptcy protection. GM has until Monday to finish restructuring or file for bankruptcy. But the company said today that its offer to exchange $27 billion in unsecured debt for 10% of the company's stock had failed. More»

Announces program to help unemployed car owners

(NEWSER) - In his first press conference as CEO of foundering GM, Fritz Henderson today made it clear he wasn’t afraid to talk bankruptcy, saying it was now “more probable,” and that he might even decide to declare bankruptcy before his 60 days were up. “We will do it in court, or we will do it out of court, but we will get the job done,” he said. More»

Obama administration will not rule out Chapter 11 for ailing autos

(NEWSER) - Treasury advisers are working to line up $40 billion in financing for General Motors and Chrysler—5 times the size of any previous bankruptcy loan—just in case the two automakers need it, the Wall Street Journal reports. While efforts continue to restructure the companies by other means, the administration is speaking to as many as 70 lenders—including Citigroup and JPMorgan, themselves recipients of bailout cash—to provide government-backstopped financing for operations during a Chapter 11 restructuring. More»

GM, Chrysler working to prepare turnaround plans before Tuesday deadline

(NEWSER) - General Motors will put Congress between a rock and a hard place when it presents its turnaround plan next week, reports the Wall Street Journal. Insiders say the automaker will ask for at least another $5 billion in loans on top of the $13.4 billion already received to keep it going beyond the first quarter, and will tell lawmakers its only other option is reorganization through bankruptcy. More»