Wednesday May 27, 01:07 PM
GM's debt-for-equity deal falls through
WASHINGTON (AFP) - Struggling US automaker General Motors (NYSE: GM - news) looked closer to bankruptcy Wednesday after it said a debt-for-equity swap offer to bondholders had fallen through.
When exchange offers expired late Tuesday "the principal amount of notes tendered was substantially less than the amount required by GM," the automaker said in a statement.
GM had sought to exchange 27.2 billion dollars of its unsecured public notes to satisfy debt reduction requirements under its loan agreements with the US Treasury and as called for in the company's own "viability" plan.
"Since these conditions, as well as certain other conditions, have not been satisfied, the exchange offers will not be consummated," GM said.
GM was widely expected to file for bankruptcy protection ahead of a June 1 deadline imposed by the administration of President Barack Obama, which has providing the automaker with billions of dollars in emergency loans.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
