/ Source: The Associated Press
General Motors says it may not make a $1 billion bond payment on June 1 if it doesn’t finish a debt-for-equity exchange by then.
The troubled auto giant plans to make the exchange offer soon to bondholders. General Motors Corp. has $28 billion in unsecured bond debt. The offer could come as early as next week.
GM says in a statement it would not make the payment if the exchange is still in progress June 1. The company also could miss the payment if it enters bankruptcy protection.
GM faces a June 1 government deadline to reduce debt, cut labor costs and complete other restructuring steps.
Financial Chief Ray Young told reporters about the possible skipped payment after speaking at a Chinese auto industry conference Wednesday in Detroit.