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.

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