(Associated Press) GM bondholders want response on restructuring plan Sunday March 22, 8:03 pm ET GM bondholders say their plan provides ‘best chance’ of keeping automaker out of bankruptcy. Bondholders of General Motors Corp. warned the U.S. government on Sunday that the struggling automaker will likely be forced to file for bankruptcy if the debt restructuring proposal they have suggested — or one like it — is not accepted.
In a letter to the Treasury and members of President Obama’s auto task force, financial advisers to GM’s bondholders said the current debt swap plan on the table won’t draw enough support from lenders.
“The result of such a failed exchange would likely be a bankruptcy that would have dire consequences for the company, the tens of thousands of hard-working Americans that GM employs and the economy as a whole,” the advisers from investment firm Houlihan Lokey wrote.
GM is required to reduce its $28 billion in unsecured debt by two-thirds under terms set by the Bush administration in December on the company’s $13.4 billion bailout loan. The Detroit automaker is nearing a March 31 deadline to get concessions from both union workers and debtholders as it races to complete restructuring plans required under the terms of its government loans. full story
