GM May File Bankruptcy

[pennypinch]

I just read about and I think blogged about GM a few weeks ago, about how they were starting to pick up business and were doing better. Now I read about how they may be filing bankruptcy soon if they cannot meet their deadlines given to them by President Obama and the Treasury department.

If this happens it will be the largest company ever to file for bankruptcy and it will, I am sure, have some very bad repercussions.

They are now in the process of preparing to file if it comes to that. They owe about $28 billion dollars in unsecured debt. They are hoping that the creditors will make a deal with them and accept an equity stake in the company in exchange for reducing their debt by at least two-thirds. Obama abd the treasury department have set them a deadline to do so or to file bankruptcy. So far the creditors have been unwilling to accept the deal because they have no way of knowing what the value of the company will be in the future.