GM Says Bondholder Offer Fails
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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