DETROIT — General Motors Corp.’s board of directors met for a second day Saturday to make the final decision on whether the automaker would complete its restructuring by filing for bankruptcy protection Monday.
The meeting’s outcome could not immediately be determined. GM and the Treasury Department, which has been guiding the automaker toward a rescue plan that will give taxpayers nearly a three-fourths company stake, went into secrecy mode.
GM’s bondholders had a 4 p.m. CST Saturday deadline to accept an offer to swap their $27 billion in debt for at least a 10 percent stake in a new GM. If the Treasury doesn’t get the amount of support it wants, bondholders could wind up with far less in bankruptcy court.
The Treasury Department had no immediate comment on the deadline passing, and company spokesman Tom Wilkinson said the automaker did not plan to make any statements Saturday.
GM took a huge restructuring step Friday when the United Auto Workers union agreed to a cost-cutting deal, and early Saturday, Germany’s finance minister said a plan was approved for Canadian auto parts maker Magna International Inc. to move ahead with a rescue of GM’s Opel unit.
But there was still much to do to beat the government’s Monday deadline to qualify for more aid. The company already has received about $20 billion in government loans and could get $30 billion more to make it through what is expected to be a 60- to 90-day reorganization in bankruptcy court.
by the associated press
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