GM: We won't make June debt payment

GM: We won't make June debt payment
General Motors’ chief financial officer today said the Detroit automaker
won’t make its June 1 debt payments on more than $1 billion in notes that mature. Advertisement
The company will either have a deal by then to restructure debt with bondholders outside of court or seek bankruptcy protection, indicated GM CFO Ray Young, speaking to reporters in Dearborn after a Detroit Chinese Business Association conference.
“We’re not going to make that payment,” he said. “That’s part of the reason why we’re going to get this thing done one way or another in 60 days. That’s the deadline.”
GM warned of the looming June 1 deadline on $1 billion in notes that mature to reach a deal with bondholders in its annual report earlier this year. It has said that without a deal, the company faced possible default.
Young reiterated GM CEO Fritz Henderson’s previous comments that bankruptcy is probable but noted: “My energies are focused upon making sure we get a bond exchange.”
Civis Romanus Sum

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