GM On Road To Partial Nationalization
http://www.washingtonpost.com/wp-dyn/content/story/2009/04/27/ST2009042703887.html
Automobile giant General Motors and the auto task force appointed by the Obama administration have agreed upon a restructuring plan for the former. The plan involves partial nationalization of General Motors, a shut down of its Pontiac operations, thousands of job cuts and imposition of harsher terms on the company’s bondholders. The proposed plan has raised a serious storm with bondholders demanding better terms, and if they reject the plan, the company will have no option but to go bankrupt. Bondholders have to take a decision by May 8. The approval of the plan will enable General Motors to reduce its debt. The US government, however, has ruled out playing a major role in the day-to-day running of the automobile giant.
http://www.washingtonpost.com/wp-dyn/content/story/2009/04/27/ST2009042703887.html
Automobile giant General Motors and the auto task force appointed by the Obama administration have agreed upon a restructuring plan for the former. The plan involves partial nationalization of General Motors, a shut down of its Pontiac operations, thousands of job cuts and imposition of harsher terms on the company’s bondholders. The proposed plan has raised a serious storm with bondholders demanding better terms, and if they reject the plan, the company will have no option but to go bankrupt. Bondholders have to take a decision by May 8. The approval of the plan will enable General Motors to reduce its debt. The US government, however, has ruled out playing a major role in the day-to-day running of the automobile giant.
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