By Kevin Krolicki
DETROIT, Feb 16 (Reuters) - Representatives of bondholders with some $28 billion in General Motors Corp debt have outlined specific proposals to the automaker on how to swap the debt for equity in a restructured company, a person with knowledge of the talks said on Monday.
GM has not yet accepted the proposals, the source said.
The debt swap is a crucial element in a revised restructuring plan for GM, which has received $9.4 billion in U.S. government aid and had been pledged $4 billion more as soon as this week.
Since Sunday, GM has made significant progress in its talks with both bondholders and the United Auto Workers union, a second person familiar with the talks said.
GM faces a deadline of Tuesday to submit a new restructuring plan to U.S. officials demonstrating how it can be made viable after reducing debt and slashing costs.
Neither of the sources wanted to be identified because of the confidential nature of the negotiations intended to keep the top U.S. automaker from bankruptcy.
(Editing by Jeffrey Benkoe) Keywords: GM/BONDHOLDERS (kevin.krolicki@thomsonreuters.com; + 1 313 967 1902; Reuters Messaging: kevin.krolicki@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
DETROIT, Feb 16 (Reuters) - Representatives of bondholders with some $28 billion in General Motors Corp debt have outlined specific proposals to the automaker on how to swap the debt for equity in a restructured company, a person with knowledge of the talks said on Monday.
GM has not yet accepted the proposals, the source said.
The debt swap is a crucial element in a revised restructuring plan for GM, which has received $9.4 billion in U.S. government aid and had been pledged $4 billion more as soon as this week.
Since Sunday, GM has made significant progress in its talks with both bondholders and the United Auto Workers union, a second person familiar with the talks said.
GM faces a deadline of Tuesday to submit a new restructuring plan to U.S. officials demonstrating how it can be made viable after reducing debt and slashing costs.
Neither of the sources wanted to be identified because of the confidential nature of the negotiations intended to keep the top U.S. automaker from bankruptcy.
(Editing by Jeffrey Benkoe) Keywords: GM/BONDHOLDERS (kevin.krolicki@thomsonreuters.com; + 1 313 967 1902; Reuters Messaging: kevin.krolicki@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.