Accessibility links

Key Debtholders Accept Improved Deal With GM


Some of General Motors' largest bondholders have accepted an offer for GM to repay debts with stock in a reorganized GM instead of cash.

The troubled U.S. auto giant had earlier offered to give bondholders a 10 percent stake in a reorganized company, but bondholders rejected that deal.

GM sweetened the deal by offering these creditors warrants that would allow them to buy a larger stake in the firm.

GM is surviving on $19.4 billion in emergency government loans, and faces a June 1 deadline to restructure and slash debt, labor, and other costs.

Another major company in the auto industry, parts maker Visteon, sought court protection from creditors on Thursday.

Visteon employs 31,000 people and was once part of the Ford Motor Company.

Managers blame the firm's problems on the steep fall in auto sales that slashed demand for auto parts.

Meantime, ailing U.S. automaker Chrysler enters a second day of hearings in its bankruptcy case Thursday.

Some information for this report was provided by AFP, AP, Bloomberg and Reuters.


XS
SM
MD
LG