Alongside with the new survival plan submitted by the American manufacturer yesterday, GM has also launched its "public exchange offers for $27 billion of its unsecured public notes". As part of the offers, the company is planning to "exchange 225 shares of GM common stock for each 1,000 U.S. dollars equivalent of principal amount of outstanding notes".
And now comes the hard part. "In the event that GM does not receive prior to June 1, 2009 enough tenders of notes to consummate the exchange offers, GM currently expects to seek relief under the U.S. Bankruptcy Code. GM is considering its alternatives in seeking bankruptcy relief in consultation with the U.S. Treasury, GM's largest lender. "
"If GM seeks bankruptcy relief, noteholders may receive consideration that is less than what is being offered in the exchange offers and it is possible that such holders may receive no consideration at all for their notes," the company said in a statement.
The exchange offers are available for solicitation until May 26 and they have to be compliant with some conditions. However, the American manufacturer says it will do all within its power to satisfy those terms.
The offers made by GM is in fact a "89 percent of the pro forma GM common stock, with the final allocation between the U.S. Treasury and the new VEBA to be determined in the future". The rest on the manufacturer's stock will be held by noteholders, while the remainder 1 percent will stay with the existing GM common stockholders.
All the information on the subject, together with the Prospectus Documents and the Schedule Tender Offer are available at the Securities and Exchange Commission (SEC) website and GM's site.
The exchange offers are available for solicitation until May 26 and they have to be compliant with some conditions. However, the American manufacturer says it will do all within its power to satisfy those terms.
The offers made by GM is in fact a "89 percent of the pro forma GM common stock, with the final allocation between the U.S. Treasury and the new VEBA to be determined in the future". The rest on the manufacturer's stock will be held by noteholders, while the remainder 1 percent will stay with the existing GM common stockholders.
All the information on the subject, together with the Prospectus Documents and the Schedule Tender Offer are available at the Securities and Exchange Commission (SEC) website and GM's site.
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