Wednesday, April 1, 2009

On Second Thought Scrap The GM Digital Option

Bloomberg just out, quoting a "person familiar" saying that the U.S. won't repay the $1 billion converts maturing June 1.
President Barack Obama’s auto task force told the biggest U.S. automaker it doesn’t want taxpayer funds used to repay debt maturities, said the person, who declined to be identified because the talks are private. Detroit-based GM has $1 billion of 1.5 percent convertible securities coming due June 1. The debentures, issued in increments of $25, fell $2.05 to $7.20 as of 1:56 p.m. in New York, which would be the lowest closing price since December, according to data compiled by Bloomberg.

GM Chief Executive Officer Fritz Henderson yesterday said that June 1 was the final deadline for completing the debt restructuring and that the automaker may enter bankruptcy sooner if it’s clear an agreement out of court isn’t possible. “The government has been very specific in providing a deadline by which we have to complete this process and we plan to aggressively pursue them in the next 60 days,” GM spokeswoman Renee Rashid-Merem said, declining additional comment.
So, uh... what is all the hoopla about with this 9.8 million SAAR posturing? GM is filing. Plain and simple. Sphere: Related Content
Print this post