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Bondholders nix GM’s offer

Posted Tuesday, May 26, 2009, 2:59 pm in Employee News

General Motors Corp. has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy by the end of this month, Reuters reported.

The largest U.S. automaker had so far failed to gain anywhere near the 90 percent of bondholder support desired to stave off bankruptcy, two sources familiar with the discussions told Reuters on Tuesday. Bondholders have until midnight to make their final decision on the tender, the news service said.

As of midday Tuesday, the source said the company had only “low-single-digit” interest from bondholders. Reuters’ sources said GM will likely file for bankruptcy some time after midnight Tuesday, but before June 1. (Reuters)
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