updated 4/22/2009 2:56:47 PM ET 2009-04-22T18:56:47

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.

© 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.71%
$30K home equity loan FICO 5.26%
$75K home equity loan FICO 4.70%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.14%
17.14%
Source: Bankrate.com