Monday, May 11, 2009

GM: Bankruptcy "More Probable"

by Bill McBride on 5/11/2009 10:51:00 AM

“Certainly the task that we have in front of us is large, but we know that we can get it done. Today it’s more probable that we would need to resort to a bankruptcy process. But there’s still a possibility and an opportunity for it to be done outside of a bankruptcy.”
GM Chief Executive Officer Fritz Henderson

The NY Times is live blogging the conference call, but there doesn't sound like much news.

GM received three bids for Hummer, and expects a sale by the end of May.

On the bonds:

Mr. Henderson said the Treasury told G.M. to offer its bondholders up to a 10 percent stake in the company in return for the $27 billion in debt that they hold but did not give a reason why. Bondholders have said the stake is too small compared to what others are receiving.
And that is why a BK is likely ...

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