Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Bondholders Reject GM Deal; Bankruptcy Looms

By the Associated Press

Posted May 27, 2009 6:59 AM CDT

(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.

General Motors world headquarters is shown in Detroit, in this Tuesday, April 21, 2009 file photo.
General Motors world headquarters is shown in Detroit, in this Tuesday, April 21, 2009 file photo.   (AP Photo/Paul Sancya, File)
In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.
In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.   (AP Photo/Carlos Osorio, File)
General Motors Corp. headquarters are shown in Detroit, in this Tuesday, July 25, 2006 file photo
General Motors Corp. headquarters are shown in Detroit, in this Tuesday, July 25, 2006 file photo   (AP Photo/Paul Sancya, File)
In this Jan. 12, 2009 file photo, the General Motors logo is seen on display at the North American International Auto Show in Detroit.
In this Jan. 12, 2009 file photo, the General Motors logo is seen on display at the North American International Auto Show in Detroit.   (AP Photo/Paul Sancya, File)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
COMMENTS
Showing 3 of 3 comments
nick
May 27, 2009 12:23 PM CDT
The bondholders-- or whatever Hedge Funds represent them-- are negotiating in a hard-line fashion as if they held all the cards. They don't. How this hard-line stance benefits the bondholders, or the Country for that matter. is beyond me. Disgustingly selfish!
nick
May 27, 2009 4:49 AM CDT
Certainly, beginning at those Chrysler dealerships who have already been notified they are losing their franchises; and then, at those GM dealerships who will soon find out they are losing theirs. The parent companies, in both cases probably will not buy-back any of the numerous unsold cars presently on the lots of these disappearing dealerships. These dealers are/will be stuck, and should be more then anxious to get rid of most, if not all of their present inventory. Bargains, you bet.
Derni
May 27, 2009 3:08 AM CDT
Does this translate into a nice sale on cars?

Copyright 2013 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

 
bankruptcy • General Motors • negotiations • auto industry • Chapter 11 • financial crisis • creditor

 
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   BuzzFeed   |   Cracked   |   Timelines   |   POPSUGAR Tech   |   Business Insider   |   HuffPost Entertainment   |   NewsOne