Debt deal's failure steers GM to brink of bankruptcy
General Motors said Wednesday that not enough bondholders agreed to an exchange offer, which expired at midnight Tuesday, to make the deal go through. GM's board will meet shortly to discuss the next steps, which will likely include bankruptcy filing.
The automaker attempted to persuade bondholders to trade in $27.2 billion in unsecured public debt notes in exchange for a 10 percent stake in the restructured automaker. GM needed 90 percent of bondholders to agree to the plan. On Wednesday, the automaker said the amount of notes turned in was "substantially less than the amount required by GM to satisfy the debt reduction requirement" set forth by the U.S. Treasury, according to a May 28 article in USA Today.