GM won't make $1B June debt payment

[brooklynite]

Source: CNN Money

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 (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.

Read more: http://money.cnn.com/2009/04/22/autos/gm_june_debt/

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tick, tick, tick...

[Romulox]

1. When is AIG's deadline to propose a new business plan?

There isn't one? That's odd!

[WriteDown]

4. There surely must be a deadline?

2525?

[tomm2thumbs]

2. that's okay, I can't make my billion dollar credit card bill either (sigh)

[Lance_Boyle]

3. GM better hope their creditors aren't holding CDSs against them

like Fidelity is against Six Flags. If they are, then there's more money for the creditors in a GM bankruptcy than in a stock-for-debt exchange. Assuming whoever issued the CDS (I'm looking at YOU, AIG) can afford to pay its obligation.

[PNutt]

5. Over-Priced Cars....

Jobs sent overseas for pennies on the dollar, yet these greedy bastards cannot pay their debts? Lets take a look at their books and see what kind of concessions that their management has made, instead of what kind of concessions that they can make their workers take. Hell, we could all be solvent tomorrow if we just decided that our debts were not really important enough to pay. Ford has managed to stay above this fray, and they should be the only one left standing. Let them sink....hell, give them some more lead to help with the descent!

[blue_onyx]

6. GM will probably file bankruptcy by then anyway

In order to carry out it's restructuring plans, such as closing 1700 dealers by June 1st, the company will need bankruptcy protection.

[MrPerson]

7. An equity position is a lesser priority position than they have now.

Won't happen.