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GM Bondholders OK Debt-for-Equity Plan in Vote

Vote paves way to bankruptcy filing tomorrow morning

By Matt Cantor,  Newser Staff

Posted May 31, 2009 9:08 AM CDT
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(Newser) – GM bondholders voted yesterday to forgive $27 million in debt for equity in the restructured automaker, the Wall Street Journal reports. The move opens the door for a bankruptcy filing tomorrow morning, the New York Times notes. The Treasury Department was in charge of deciding whether enough bondholders backed the offer; “more than 50% agreed,” said an insider.

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)
Cars are lined up for sale at a GM Dealership in Los Gatos, Calif., Thursday, May 28, 2009.
Cars are lined up for sale at a GM Dealership in Los Gatos, Calif., Thursday, May 28, 2009.   (AP Photo/Marcio Jose Sanchez)
In this photograph taken May 2, 2009, storm clouds form over the sign for the GM dealership in Warren, Ohio.
In this photograph taken May 2, 2009, storm clouds form over the sign for the GM dealership in Warren, Ohio.   (AP Photo/Amy Sancetta)
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Money • US

 
bankruptcy • General Motors • debt • equity • auto industry • bondholder

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