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Pushing General Motors restructuring plan

according to foreign media reports, General Motors on Monday launched a $ 27 billion of debt-for-equity plan, designed to help the United States doom of the largest automaker to avoid bankruptcy. Affected by this, the company's share price rose sharply.  

GM said in a statement Monday, the company will provide the bondholders with 10% stake in the reorganized company. Statement, to 610.5 million shares of the issued ordinary shares, GM shareholders will hold approximately 1% shares of reorganized company, United States Government and the United Auto Workers Union (UAW) will divide up the remaining 89% shares.

according to GM, according to a regulatory filing submitted today, the company will be by the end of 2010 to reduce the number of dealers by 42%, to 3,600, and will lay off 21,000 full-time unionized workers to cut costs. According to this document, GM its bondholders 225 shares per $ 1000 bond holdings in Exchange for company shares.

GM said it requires 90% of bondholders accepted the debt-for-equity plan, to save the company from bankruptcy. Mr Henderson said today that if this plan will work out well, GM will be able to achieve operating profit again next year.

the same day, GM shares on the New York Stock Exchange (NYSE) in regular trading up $ 0.35 per cent at $ 2.04, or 20.71%; previously rose 33%, to $ 2.25, and was the highest level since November 26 last year. The past 52 weeks, GM's highest price at $ 24.24, lowest price $ 1.27.

 

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