GM Bondholders Give Swap Plan A Resounding Eh

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General Motors Corp’s offer to exchange shares in the reorganized company for $27 billion in bond debt has met with a tepid response from investors, sources familiar with the process said on Tuesday.

GM bondholders have only tendered a low single-digit percentage of the total debt available, the people said, asking not to be named because details of the exchange are not public.

GM has said it could be forced to file for bankruptcy if it cannot retire 90 per cent — or $24 billion — of its bond debt in the exchange offer that expires just before midnight.

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