Majority of GM bondholders agree to swap debt for shares

June 1st, 2009 - 5:19 am ICT by IANS  

Barack Obama Washington, June1 (DPA) On the eve of a bankruptcy anticipated to be one of the country’s largest ever, a majority of creditors to the floundering General Motors agreed Sunday to a swap of debt for partial ownership and warranties on shares of a new GM.
About 54 percent of the investors, or 975 institutions, agreed to a newly sweetened offer from the government which would give them up to 25 percent of the company, according to Elliot Sloane, spokesman for the bondholders’ ad hoc committee, according to Bloomberg financial news service.

The move put another piece in place before the government-mandated deadline of Monday, when the country’s largest car maker is expected to declare bankruptcy.

US President Barack Obama and GM head Fritz Henderson are scheduled to speak Monday on the expected bankruptcy.

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