Tags:
Journalism of Courage
General Motors said on Thursday a committee of bondholders has agreed to a sweetened deal proposed by the US government to erase the automakers unsecured debt in exchange for company stock.
The news came in a regulatory filing that spells out the Obama administrations game plan for what it hopes will be a speedy Chapter 11 bankruptcy reorganisation that will leave the US government as the dominant GM shareholder with a much smaller debt load.
A person familiar with GMs plans said it was probable that the company would file for bankruptcy protection on Monday.
The government proposal is similar to the approach taken in the bankruptcy reorganisation approach used by Chrysler. Its plan to shed assets and sell control of a downsized carmaker to Fiat,aided by government financial assistance,could receive final approval from a bankruptcy court judge in New York before the end of the week.
