Bondholders Reject GM Deal; Bankruptcy Looms
By Newser Editors and Wire Services
Posted May 27, 2009 6:59 AM CDT
General Motors world headquarters is shown in Detroit, in this Tuesday, April 21, 2009 file photo.   (AP Photo/Paul Sancya, File)
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(Newser) – 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.