Scrambling, GM Offers Equity for Debt

GM officials are pushing bondholders to swap out the debt they hold for equity in the troubled corporation, reports the Wall Street Journal. The unique strategy represents a last-ditch attempt to stave off creditors and obtain federal aid to survive. A debt swap could leave unsecured debtholders with major losses. Many bonds have been trading at a fraction of face value, indicating investors aren't confident GM can meet its debt obligations. GM must come up with a plan for federal aid by Tuesday.
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