05.26.2009 12:00 PM
General Motors Struggles to Avert Bankruptcy

DETROIT: General Motors today agreed to fund a trust to support retiree health care beginning next year. The move is part of the troubled auto-maker’s effort to restructure without declaring bankruptcy. The United Auto Works union received 17.5 percent of GM’s common stock, $6.5 billion in preferred shares and a $2.5 billion note, the Associated Press reported. GM plans to close 14 manufacturing facilities as part of a restructure due to the federal government June 1.

The auto maker must meet certain terms to continue receiving federal bail-out money. The government lent GM another $4 billion on Friday in addition to the $15.4 billion it previously provided. About 21,000 jobs will be cut in the factory closures.

GM received federal approval last week to exchange post-restructure shares for $27 billion in bonds. Reuters said interest in the exchange has been “tepid,” and that if GM couldn’t retire around $24 billion of its old bond debt for the new exchange, it would likely file for bankruptcy.

Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Thursday 10:05 AM
NAB Requests Expedited Review of Spectrum Auction Lawsuit
“Broadcasters assigned to new channels following the auction could be forced to accept reductions in their coverage area and population served, with no practical remedy.” ~NAB

202 Communications /   Friday 12:41 PM
Albis Technologies Appoints New Head of Access Solutions
ignite strategic communications /   Thursday 03:48 PM
2015 HPA Tech Retreat(r) Unveils Expanded Session Schedule

Featured Articles
Discover TV Technology