GM reaches swap deal, but bankruptcy still lies ahead

We have all been reading and hearing about GM, you would have to be living under a rock not to. The big question now is will they file bankruptcy or maybe the question should be “when” will they file bankruptcy? Here’s an article that I found on MarketWatch.com that I think you will find interesting…

By Shawn Langlois, MarketWatch

SAN FRANCISCO (MarketWatch) -- General Motors Corp. said Thursday that it reached a new debt-swap deal with bondholders that likely won't save the automaker from imminent bankruptcy but should help speed the process.

Under the terms of the new exchange, bondholders will get 10% equity in the new restructured company with an option to buy 15% more.

"Implementation of this proposal would result in a New GM with a healthy balance sheet, putting the new company on a clear path toward long-term viability and success," GM said in a statement.

The company warned that bondholders could see their entire stake wiped out if they don't approve the deal by a Saturday deadline.
GM shares were initially halted on the news before jumping …

original article