GM's bondholders had until Tuesday midnight to decide on the $27 billion debt swap for a 10 percent ownership in the reorganized company, Reuters reported. Until now, no one has made any comment on the bondholders' decision, yet the lack of any information points that an agreement has not been reached.
The debt swap, despite the fact it has been regarded as being unfair by the debtholders, is GM's last chance of remaining outside court bankruptcy. The outcome of the proposal may be made public sometimes today, as spokeswoman Renee Rashid-Merem told the source.
There are little chances for GM's proposal to be accepted by over 90 percent of its bondholders, a percentage required to validate the swap, according to inside sources. This despite the fact that the auto task force considered the offer as being as fair as it can get. Some see in the offer an easy way out for GM.
"I think the exchange offer was really a transparent attempt to blame bondholders for the bankruptcy rather than to accept responsibility for years of mismanagement and failure to anticipate things that should have been understood," Richard Tilton, a restructuring analyst at Covenant Review was quoted as saying by Reuters.
Everyone, including the Obama administration and the UAW, expects General Motors to file for bankruptcy on the first of June. "GM today stands at the very brink of bankruptcy," the United Auto Workers said in a document released on Tuesday.
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