GM Says Bondholder Offer Fails General Motors seems destined for bankruptcy. Bondholders in the automaker have forced it to withdraw a plan to swap $28 billion in bond debt for 10 percent of the company's stock. GM has until Monday to complete a government ordered restructuring that includes debt reduction.
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GM Says Bondholder Offer Fails

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GM Says Bondholder Offer Fails

GM Says Bondholder Offer Fails

GM Says Bondholder Offer Fails

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General Motors seems destined for bankruptcy. Bondholders in the automaker have forced it to withdraw a plan to swap $28 billion in bond debt for 10 percent of the company's stock. GM has until Monday to complete a government ordered restructuring that includes debt reduction.

STEVE INSKEEP, host:

NPR's business news starts with GM moving toward bankruptcy.

(Soundbite of music)

INSKEEP: Midnight was the deadline for General Motors to reach a deal with its bondholders. GM was offering bondholders' shares in stock in exchange for their debt, GM was trying to reduce the total amount of debt. But that deadline came and went in today. GM announced that not enough bondholders accepted the terms, which means the carmaker is almost certainly headed into bankruptcy court.

GM did strike a deal with the United Auto Workers yesterday. Under that agreement, the union would receive a smaller stake in GM than previously planned. And the government could end up owning as much as 70 percent of the restructured carmaker.

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