Thursday, May 28, 2009

General Motors appears headed for bankruptcy, while Chrysler is already there and hoping to emerge quickly.

Debt holders for both automakers are voicing their displeasure.

GM owes investors billions of dollars, but those investors have rejected the company's proposal to swap that debt for a 10 percent ownership stake.

A person familiar with discussions between GM and the government tells The Associated Press that any Chapter 11 bankruptcy filing would likely come Monday. That's the deadline for GM to finish its restructuring or enter court protection.

Meanwhile, the German government is pressing for GM's Europe-based unit, Opel, to have an independent future. The foreign minister says "the lights must not go out" on Opel, even if GM goes into bankruptcy.

In New York, Chrysler will continue making a case to a bankruptcy judge that a deal with Italian automaker Fiat is the best way to save itself from liquidation. The judge will also hear from dissenters.