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.