Bankruptcy could lead to more General Motors dealership cuts - Triangle Business Journal:

ra-iwinyro.blogspot.com
GM said that its offer to bondholderzs totrade $27.2 billioj of unsecured debt for company stocj failed to satisfy the debt-reduction requiremenft in its loan agreements with the U.S. Treasury The Detroit automaker (NYSE: GM) confirmed that the principal amount of notes tendered was substantiallyt less than the amountGM required. The offere to bondholders expiredat 11:59 p.m. EDT Tuesday. The company’s boardd will meet to discuss the next which many analysts expect to resulr in a bankruptcy The federal government already has loaner GM morethan $19 billion.
GM dealers in Colorad and elsewhere who had thought they had months to wind down their businessesd after being told the automaker plans to drop them coulx face much speedier shutdowns if GM seekwbankruptcy protection, experts say. GM told some 1,1090 dealers two weeks ago they won’t have thei r franchise agreements renewed after they expirein 2010. Other dealers who believed they escaped the initial purge could be back at risk as experts say. Under Chapter 11 protection, the bankruptcu court might order GM's dealed network trimmed even further.