GM bondholders propose debt swap deal: source

[babylonsister]

GM bondholders propose debt swap deal: source
Tue Feb 17, 2009 12:25am GMT

By Kevin Krolicki


DETROIT (Reuters) - Representatives of bondholders with some $28 billion in General Motors Corp (GM.N) debt have outlined specific proposals to the automaker on how to swap the debt for equity in a restructured company, a person with knowledge of the talks said on Monday.

GM has not yet accepted the proposals, the source said.

The debt swap is a crucial element in a revised restructuring plan for GM, which has received $9.4 billion in U.S. government aid and had been pledged $4 billion more as soon as this week.

Since Sunday, GM has also made significant progress in its talks with both bondholders and the United Auto Workers union, a second person familiar with the talks said.

GM faces a deadline of Tuesday to submit a new restructuring plan to U.S. officials demonstrating how it can be made viable after reducing debt and slashing costs.

Neither of the sources wanted to be identified because of the confidential nature of the negotiations intended to keep the top U.S. automaker from bankruptcy. But both said it appeared that GM would be able to detail progress in both sets of high-stakes talks to U.S. officials by Tuesday.

more...

http://uk.reuters.com/article/ousiv/idUKTRE51F4W820090217?sp=true

[marketcrazy1]

1. saw that, not to go off topic but have you seen currencies tonight

something is up, and it does not look good!!!!!

[4 t 4]

3. Well if they don't make that

deal they should immediately give back the 9.4 million. Better to sell a stake of their company than just lose it right. This is another way to stay alive.

[BeatleBoot]

2. Classic Pre-Bankruptcy

Went through it with a Tier I auto supplier that went Chapter 11, then 7.

No one's going to swap anything.

It's both a clear message to D.C. and to the country.

Tomorrow is the day,

Cross our fingers, America.

[RB TexLa]

4. Defiantly looks like bankruptcy this week. With the government first in line

the bond holders are going to get what they can. Hopefully for them the government is a good liquidator.

[4 t 4]

5. well if they chose bankruptcy

versus this with so many jobs at stake then I hope the higher ups suffer greatly. It will be very selfish.