GM CFO: Company will most likely miss June 1 deadline

GM’s Chief Financial Officer Ray Young said today that the automaker does not expect to make a $1 billion debut payment by June 1 – the deadline that the Obama administration has imposed on the Detroit automaker to restructure or file for bankruptcy.

Young said that GM will most likely miss the payment because the bond exchange offer to its bondholders is expected to be pending come June 1. Of course if GM cannot convince bondholders to make an exchange GM will be forced to file for Chapter 11 before their deadline.

Fritz Henderson is working to cut GM’s $28 billion in unsecured debt to less than $9.2 billion. GM also needs concessions from the UAW.

Source: Detroit News

– By: The Daily Auto Editor