GM Asks Bondholders To Swap Debt For Shares
DAVID GREENE, host:
NPR's business news starts with GM's latest attempts to butter up bondholders.
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GREENE: General Motors made a new offer today to attract bondholder support for a quick restructuring. Bondholders are being asked to swap their debt for shares in a new GM. They'd get 10 percent of the stock and warrants to buy an additional 15 percent. Now GM's previous offer didn't include those warrants, and it was overwhelmingly rejected by bondholders. This sweeter deal gives bondholders more potential for rewards if the company does succeed. In exchange, bondholders must support GM's plan to restructure. The company's widely expected to file for bankruptcy within the next few days. The Treasury Department has set a Saturday deadline for bondholders to accept the new offer. A committee representing GM bondholders said it liked the plan - at least better than a drawn-out bankruptcy.
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