DETROIT – General Motors Corp. says not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost certainly headed for bankruptcy protection.
GM has until Monday to finish restructuring or file for Chapter 11. But the company said Wednesday that its offer to exchange 27 billion in unsecured debt for 10 percent of the company’s stock had failed.
GM has received 19.4 billion in federal loans. The Monday deadline was set by the goverment and includes debt reduction, labor cost cuts and plant closures.