Auto rescue details coming; GM’s debt-deal deadline looms
It has until June 1 on billion in notes; Tuesday is when U.S. reports are due
BY TIM HIGGINS • FREE PRESS BUSINESS WRITER • March 29, 2009
GM, which has about $28 billion in unsecured debt, warned in a U.S. Securities and Exchange Commission filing that if it doesn’t have a deal on the $1 billion by June 1, a default would arise that could trigger other defaults and “potentially require us to seek relief through a filing under the U.S. Bankruptcy Code.”
http://www.freep.com/article/20090329/BUSINESS01/903290467
The major sticking point continues to be restructuring the companies' debt. The loan terms call on GM to try to shed two-thirds of its unsecured debt and to get the UAW to accept half of the money owed the union for its retiree health care trust in stock rather than cash.