GM Heading to Bankruptcy Court

General Motors Corp. (GM) appears to be heading to bankruptcy court. This is after the bond holders who hold $27 billion in debt voted down an offer that would give them only 10% of the restructured GM, as opposed to the 58% that they were looking for.

GM indicated that it may not make $1 billion of debt payments on June 1. The Government is likely to hold 70% of the equity of GM post-bankruptcy, which is reimbursement for $28 billion already given to the company and an expected $40 billion more when a filing occurs. The UAW will have 20% of the company.

Pontiac will be phased out, while negotiations to sell Hummer and Saab continue.

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