Wednesday, May 27, 2009
General Motors Corp. 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 Chapter 11. But the company said Wednesday that its offer to exchange $27 billion in unsecured debt for 10% of the company's stock had failed.
GM has received $19.4 billion in federal loans. The Monday deadline was set by the government and includes debt reduction, labor cost cuts and plant closures.