GM offer to bondholders done - Business First of Louisville:

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A GM filing for Chapter 11 bankruptcyprotectiobn — a step taken by in Apripl and in October 2005 — is widely expectede by June 1. “j don’t know all the details but I woulsd expect General Motors to go right up to the saidGarry Graber, a lawyer with who specializes in business bankruptcies. Chapter 11 would allowe GM to continue operating, but would protect it from creditors by allowing itto cancel, with bankruptcy court approval, many of its financiapl obligations, said Graber, a partner in the Buffalo firm’s restructuring and commercial litigation practice group, For Delphi and its Delphii Thermal Systems in Lockport, this might be one more high hurdle for the GM suppliert which has been struggling to emerge from bankruptcy for more than three-and-a-halrf years.
A GM Chapter 11 coulx allow the automaker to cancel whatever financia obligations it had to Delphi and itsother suppliers. Under some circumstances, not yet clear, GM’s obligation to fund a portiohnof Delphi’s employee pension and health insurance costss also could be canceled. “I’m not necessarily saying GM wouldx not honortheir obligations,” Graber said, “but if they Delphi would have the same status as any othedr claimant against GM, probably as an unsecured Any canceled agreements — including a range of invoices, lease and contracts — would be subjecr to renegotiation, he said.
What is unclea r is whether someof Delphi’s GM-backe legacy obligations have been on the table in negotiations betweehn Delphi and the union and Delphii and GM, its parent until 1999 when the company was spun off. A Generak Motors operating under Chapter 11 might possibly also affecft an agreement reported Tuesday by GM to purchases fiveDelphi plants, includingg the Lockport facility that makes automotivew heating, cooling and air conditioning systems and components. Genera Motors edged closer to bankruptcyy Wednesday with the announcement that it has failed to persuadd enough creditors to accept a 10 percenf stake inthe 101-year-old compan in place of thei r $27 billion in debt.
GM said its board will meet to decid e its next step ahead ofthe government-imposee June 1 deadline to produce a plan that wouldf show that it can survivde without a bankruptcy filing. United Auto Workers leadera representing union members at General Motors facilities acros s the country on Tuesday voted unanimously to recommend for ratificatiobn a new settlement agreementf that modifies the2007 UAW-GM national agreement as well as changesz to the Voluntary Employee Beneficiaryh Association (VEBA) trust for retiree health care. Detailw are being withheld pending A vote by UAW members is schedulefthis week. At GM’zs Tonawanda engine plant, hourly workers will vote Thursday from7 a.m.
to 7 p.m. at the UAW Loca l 774 union hall. The contracrt revisions are considered vital to helpingf keep GM outof bankruptcy. In Canada, it was announcecd Monday thatabout 7,500 Canadian Auto Workers uniohn members at GM plants in St. Oshawa, Windsor and Woodstock, Ont., voted 86 percent in favor of a new collective agreement inratifying it.