General Motors raises the stakes in stand-off with bondholders
23 April 2009

General Motors has raised the stakes in its stand-off with major bondholders by announcing its intention not to pay off $1 billion (£600 million) in debt due on 1 June.

GM will offer shares in place of its debt, the only other option being for the company to file for bankruptcy protection.

The move is preparation for an expected larger version of the debt-for-shares offer, in which GM hopes to clear $28 billion (£19.2 billion) in return for equity in the company.

If the bondholders don’t accept the offer, GM may enter bankruptcy-court protection, wiping out its debts and giving it a chance to become a viable concern again.

Matt Rigby

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lexus LC500
    Car review
    20 October 2017
    Futuristic Lexus LC coupé mixes the latest technology with an old-school atmospheric V8
  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK