GM Banks On Debt Swaps In New Restructuring Plan

Law360, New York (April 27, 2009, 12:00 AM EDT) -- In its latest bid to avoid a trip to bankruptcy court, General Motors Corp. has revealed a sweeping restructuring plan that, if successful, would give the U.S. government a controlling stake in the beleaguered automaker.

Under the plan announced Monday, GM proposed to launch a bond exchange for some $27 billion of its unsecured public debt, offering certain bondholders shares of GM common stock and accrued interest.

The debt swap offer would exchange 225 common shares for each $1,000 worth of debt.

GM is negotiating with...
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