General Motors Corp. plans to announce details of its revised viability plan early this morning.
The troubled Detroit automaker is expected to formally launch a debt-to-equity exchange with unsecured bondholders early this week, presumably today, as part of its efforts to restructure nearly $28 billion in debt and to satisfy the White House’s demands for a healthy balance sheet.
The troubled Detroit automaker is expected to formally launch a debt-to-equity exchange with unsecured bondholders early this week, presumably today, as part of its efforts to restructure nearly $28 billion in debt and to satisfy the White House’s demands for a healthy balance sheet.
GM faces a June 1 deadline to improve its restructuring plan and impress President Barack Obama or face bankruptcy. Obama’s auto task force had ruled that GM’s previous viability plan failed to go far enough in fixing the company, which is staying afloat on $15.4 billion in government loans. The company has lost about $70 billion over the past two years and has asked for as much as $14.6 billion in additional U.S. government loans.
GM Chief Executive Fritz Henderson has said the business plan could include additional job cuts and further plant closings. Many think the company’s Pontiac division will be axed.
