General Motors Bankruptcy Filing Appears Imminent

General Motors (GM) is preparing for a bankruptcy filing amid signs that a majority of its major bondholders had backed a revised debt-equity exchange, the Wall Street Journal reported on Saturday.

From The WSJ: The company, the U.S. Treasury and an ad hoc committee representing large institutional creditors all declined comment after the expiration of a 5 p.m. EDT deadline for acceptance of the exchange. However, one member of the ad hoc committee said…..that the sweetened deal was expected to be approved by a majority of noteholders.

GM’s board was meeting ahead of an expected announcement on Monday that the auto maker will seek Chapter 11 protection, and GM Chief Executive Fritz Henderson scheduled a news conference Monday in New York.

GM’s bankruptcy will comes at a price. There are currently 60,000 GM employees. The automaker plans to reduce the number to 38,000 by the end of fiscal 2010.

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