GM bondholders refuse to budge, making bankruptcy likely
General Motors is on a collision course for bankruptcy. The company said this morning that it didn’t get 90% of its bondholders, who collectively hold $27.2 billion in GM debt to take stock for their bonds. Since the Treasury Department has required GM to get 90% of that debt converted to stock to merit more tax dollars and avoid bankruptcy, a court filing seems inevitable. The only thing that would stop it is if GM sweetens an offer to those creditors and gets 90%…
David Welch
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Auto Beat - BusinessWeek
Topics: chevrolet, finance, treasury