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Bankruptcy closer to the American automaker GM

A majority of bondholders of General Motors refused the offer of the manufacturer to convert their bonds into shares. This was announced Wednesday that the company should be placed under the law of bankruptcy protection.

GM has until Monday to submit a restructuring plan meeting at the White House, under penalty of being placed in bankruptcy. Detroit firm already received $ 19.4 billion American Federal assistance. It should detail in this plan projects in matters of plant closures and reduction of its debt and its costs.

But the automaker announced Wednesday that its proposal to convert some U.S. $ 27 billion in bond debt an interest of ten percent has its capital had been refused by an excessive number of holders of bonds to be validated. A meeting of its Board of Directors is now expected to decide on the course to follow.

In a statement, the manufacturer says that the number of holders of bonds who accepts the offer was substantially lower than that required by GM to meet the requirements of debt reduction under these loan agreements with the U.S. Department of Tresor.

The Obama administration has indicated that it would release additional funds for GM on the condition that 90 percent of its bondholders and its unionized workers accept concessions to reduce the cost of the manufacturer.

Bankruptcy closer to the American automaker GM picture #1

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