DETROIT -- General Motors Corp and the U.S. Treasury on Thursday made an improved equity exchange offer to bondholders with $27 billion in debt intended to pave the way for a quick bankruptcy process for the automaker.
Under the proposed deal, which GM said was supported by creditors representing about 20 percent of its debt, bondholders would be offered 10 percent of a reorganized company and given warrants to purchase another 15 percent.
In exchange for the improved payout, creditors would agree not to oppose a move to sell GM's profitable assets to a new company funded by the U.S. government in a fast-track bankruptcy process.
The exchange offer will be open to bondholders until 5 p.m. Saturday EDT, GM said.
The U.S. Treasury would own 72.5 percent of the new GM coming out of a bankruptcy sale process, while a trust affiliated with the United Auto Workers union would own 17.5 percent, GM said in a filing with securities regulators.
© 2009 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.
|
