GM is asking creditors to take an equity stake in the company in return for reducing that debt by at least two thirds. The auto task force overseeing $13.4 billion in federal loans declared last month that neither the company nor its competitor, Chrysler LLC, were viable under turnaround plans the companies submitted Feb. 17. New CEO Fritz Henderson said at his first press conference last week that he would not have taken the job as CEO if he wasn’t willing to take the bankruptcy process through bankruptcy.”]
Source: https://www.bankinfosecurity.com/gm-readies-for-bankruptcy-a-1360