GM to Cut 21,000 U.S. Factory Jobs, Kill Pontiac, Try to Pay Government Debt with Stock… To Get More Bailouts
April 27th, 2009Via: AP:
General Motors Corp. said it will cut 21,000 U.S. factory jobs by next year, phase out its storied Pontiac brand and ask the government to take company stock in exchange for half GM’s government debt as part of a major restructuring effort needed to get more government aid.
The struggling automaker also said it will offer 225 shares of common stock for every $1,000 in notes held by bondholders as part of a debt-for-equity swap.
The annoucements came in a filing Monday with the Securities and Exchange Commission.
GM is living on $15.4 billion in government loans and faces a June 1 deadline to restructure and get more government money. If the restructuring doesn’t satisfy the government, the company could go into bankruptcy protection.
