BBC Business News reports that General Motors’ battle to avoid bankruptcy has suffered a major blow as bondholders have rejected a key part of the carmaker’s restructuring plan.
The board will now meet to discuss its “next steps” after a large number of investors refused to exchange their debt for company shares.
Meanwhile, the German government is due to meet to discuss bids for GM’s Europe arm, hoping to secure its future.
Four bidders are in the running for its Opel and Vauxhall operations.
German Chancellor Angela Merkel is set to meet GM representatives and US government officials at 2000 BST on Wednesday night.
But German Economy Minister Karl-Theodor zu Guttenberg told Reuters news agency that two of the bidders – Italian carmaker Fiat and Canadian-Austrian car parts group Magna – would have to improve their offers significantly.
Although the ultimate decision rests with GM in Detroit, Germany’s preference is crucial as the government is being asked to put up hefty loan guarantees for the winning bidder for GM Europe. Full story…
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