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Bankruptcy May Be Unavoidable For General Motors

Last updated on Wednesday, May 27, 2009

(UNDATED) - Bankruptcy now appears inevitable for General Motors.

The Detroit-based automaker, with key Indiana facilities in Indianapolis, Marion, Bedford and Allen County, has announced it does not have enough bondholders willing to exchange debt for company stock.

GM had hoped to exchange 27.2 billion dollars in unsecured debt for 10 percent of company stock.

The move was needed to satisfy debt reduction requirements under its loan agreements with the federal government.

GM is facing a Monday deadline to complete a restructuring of file for chapter 11 bankruptcy protection.

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