Saturday, April 18, 2009

GM Update

by Bill McBride on 4/18/2009 12:08:00 AM

On March 30th, GM was given 60 days, and Chrysler 30 days, to avoid bankruptcy. That means an April 29th deadline for Chrysler to reach a deal with Fiat, and a May 29th for GM to present an acceptable restructuring plan agreed to by all parties.

Here is an update from Reuters: GM readies all-equity offer for debt-sources

The Obama administration has directed General Motors Corp to prepare a new restructuring plan that would pay off bondholders and the automaker's major union in stock in exchange for $48 billion in debt ... The U.S. Treasury ... has indicated that it could also convert ... taxpayer-backed loans into GM stock ...

[GM Chief Executive Fritz] Henderson said it was still feasible for GM to avoid bankruptcy, but said the automaker was also working on detailed plans for a filing if it is forced to take that route.
This might seem like a never ending story, but Chrysler only has 12 more days, and just 42 days left for GM.

Best to all.