GM To Cut 21,000 US Factory Jobs, Shed Pontiac

By: Associated Press Email
By: Associated Press Email

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Monday, April 27, 2009

General Motors shareholders would be left with just one percent of company stock under a restructuring plan the automaker advanced today.

GM says it will ask the government to take more than half its stock in exchange for half of GM's government debt.

The restructuring also means the end of 21,000 factory jobs by next year and the demise of its Pontiac line of vehicles.

The struggling automaker says it will offer 225 shares of common stock for every $1,000 in notes held by bondholders as part of a debt-for-equity swap that aims to retire most of GM's $27 billion in unsecured debt.

The announcements came in a filing today with the Securities and Exchange Commission.

GM faces a June 1 deadline to restructure and get more government money to avoid filing for bankruptcy protection.

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