General Motors or is it ‘Government Motors’?

The US’s biggest carmaker fails to persuade enough of its creditors to swallow their losses and is left on the brink of bankruptcyGeneral Motors has conceded defeat in its efforts to reach a deal with bondholders over $27bn (�17bn) in liabilities, leaving it freewheeling towards bankruptcy.A filing for legal protection from creditors is likely to happen by Monday.

The US government could take an ownership stake as high as 70% in return for public funding of up to $50bn to keep the Detroit-based motor manufacturer afloat.GM, which employs 235,000 people globally, admitted this morning that it had failed to persuade recalcitrant lenders to accept a 10% equity stake in return for the cancellation of billions of dollars in loans.The company said the number of bondholders accepting the proposal fell “substantially short” of the 90% required for approval and that the offer had lapsed.

Rest of article: Government Motors for GM?


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