Rus News Journal

Investors GM refused to remit a debt in exchange for concern actions

Owners of long-term bonds of General Motors disagreed on the offer of a management of a motor-car manufacturer on debts repayment under securities at a rate of 24 billion dollars in exchange for a 10 percent share in a share capital of the new re-structured firm. As informs the American edition The Detroit News that this transaction took place, the consent of 90 percent of investors, however the desire was necessary to make concessions company expressed “essentially smaller“ number of owners of bonds.
it is necessary to notice that now the general debt of General Motors to holders of bonds makes 27 billion dollars, thus the majority of investors initially declared that do not agree with agreement conditions as the share offered by a management in the new company is not comparable to debts. According to creditors, GM should give to them not less than 58 percent of shares.
Thus in GM environment it was possible to agree with Incorporated trade union of workers of an automobile industry of the USA (UAW) about debt re-structuring. UAW agreed to receive a 20 percent share holding of concern in exchange for the promise not to spend till 2015 of strikes, cutting-down of volumes of free medical services, and also the consent not to demand increase in salaries and payments of bonuses in 2010 and 2011.
the permission of questions with investors is one of key points in respect of concern GM on the re-structurings, which final version a motor-car manufacturer by June, 1st should give to the American government. In the event that anti-recessionary strategy of the company will not be approved by officials General Motors for protection against creditors it is necessary to use 11th article of the law of the USA, and viable actives to sell to the government.