GM won't make $1B June debt payment
June payment would be due a day after government's deadline for company to submit restructuring or bankruptcy plan.
By Peter Valdes-Dapena, CNNMoney.com senior writer
April 22, 2009: 1:10 PM ET
NEW YORK (CNNMoney.com) -- General Motors won't be making a June 1 debt payment of $1 billion, a company spokeswoman said Wednesday.
The debt is due the day after GM's government-imposed May 30 deadline to have an aggressive restructuring plan in place or be left to face bankruptcy.
GM (GM, Fortune 500) said it wouldn't make the June 1 payment because as part of its restructuring, the company will be offering to exchange bondholder's debt for equity in the company.
"We're going to have an exchange offer open anyway," said GM spokeswoman Julie Gibson.
A press representative for GM bondholders was not immediately available to comment.
While GM CEO Fritz Henderson has said that bankruptcy has become "more likely" in recent weeks, he has also said that an out-of-court restructuring remains a viable option.
GM has received $13.4 billion in federal loans and could receive an additional $5 billion before May 30. Beyond that, the Treasury department task force overseeing restructuring for GM and Chrysler has not said how much more support GM might be eligible to receive if it is able to restructure and reduce its debts and other obligations.
Find this article at:
http://money.cnn.com/2009/04/22/autos/gm_june_debt
What You Will Find Here
- OJOS11
- Articles and news of general interest about investing, saving, personal finance, retirement, insurance, saving on taxes, college funding, financial literacy, estate planning, consumer education, long term care, financial services, help for seniors and business owners.
READING LIST
-
▼
2009
(202)
-
▼
April
(29)
- WSJ Opinion: Mauling of GM Bondholders
- GM Bondholders Make Counter Proposal (Marketwatch)
- US Treasury on Buy America Bonds (BAB)
- Bloomberg : Raw Deal for GM Bondholders
- it's out: GM OFFER TO BONDHOLDERS swapping stock f...
- Business Week: Economic Stimulus for Medical Records
- Financial Times: GM's New Offer to Bondholders
- How Good is Your 401k ? Rate Your Company's Retire...
- MARKETWATCH California BABS Build America Bonds
- CNN: GM not paying June 1 interest
- The New Buy America Bonds (BABS) taxable munis sub...
- Frugal Living Ideas: Free Stuff (South Florida Su...
- Paying for College from 0 to 18 (NY Times)
- Obama Kids Tax Shelter 529 College Plan (WSJ)
- WSJ on Annuity Strategies for Retirement Income - ...
- OBAMA PLAN: GM BOND HOLDERS TO GET STOCK (REUTERS)
- Stimulus Package Opportunities (from Bondbuyer.com)
- The New Build America Bonds (from Reuters)
- The New Dividend Aristocrats ( from the Wall Stree...
- (from the street.com ) Moody Comments on probabili...
- Historical Plot: Boom & Bust Cycles (from dshort....
- Don't Overlook These Last Minute Tax Tips (Turbota...
- Ford: Good Response from Debt Buyback, Debt Downgr...
- Where Are We Compared to Other Bear Markets (from ...
- A Good Time to Hold Bonds (NY Times)
- Investor Psychology - Common Traps
- Morningstar Advisor on Immediate Annuities
- protecting your assets from creditors
- Retirement Income without Dividends (N Y Times)
-
▼
April
(29)
Blog List
-
-
The EU Is Spending Billions on Hydrogen-Ready, But Where’s the Hydrogen? - I'm all in favor of hydrogen-powered plants to produce electricity if only we had cheap hydrogen. But we don't and likely won't.
-
How Companies Dodge Tariffs - Protectionist trade policies are popular on both the left and right. But some economists say they’re likely to backfire.
-
Neom wants to build a 1,500-foot infinity pool that's almost 4 times longer than one in Dubai - The pool planned for the Treyam region of Saudi Arabia's Neom megaproject will be 1,500 feet long and suspended 220 feet above the sea if completed.
-
Everybody Else Is Reading This - Snowflakes That Stay On My Nose And Eyelashes Above The Law Trump’s New Birth Control […]
-
Maximizing Employer Stock Options - Oct 29 – On this edition of Lifetime Income, Paul Horn and Chris Preitauer discuss the benefits of employee stock options and how to best benefit from th...
-
Wayfair Needs to Prove This Isn't as Good as It Gets - Earnings were encouraging, but questions remain about the online retailer's long-term viability.
-
Hannity Promises To Expose CNN & NBC News In "EpicFail" - *"Tick tock."* In a mysterious tweet yesterday evening to his *3.19 million followers,* Fox News' Sean Hannity offered a preview of what is to come from ...
-
Don’t Forget These Important Retirement Deadlines - *Now that fall is in full swing, be sure to mark your calendar for steps that can help boost your tax-advantage retirement savings.*