Motors Liquidation Company (fka MTLQQ)

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GM Bondhldr Concession Demands May Push Co To Bankruptcy-ReportLast update: 2/12/2009 6:17:27 AMDOW JONES NEWSWIRES

General Motors Corp. (GM) bondholders want more money in exchange for forgiving billions in debt and are threatening to push the company into bankruptcy if they don't get it, The Detroit News reported in its Thursday editions. GM has been negotiating with bondholders this week on a debt exchange that would cut the auto maker's unsecured debt by two-thirds to $9.2 billion, but it would have to get the bondholders to accept about 30 cents on the dollar, which is a requirement of the company's $13.4 billion federal loan package. The bondholders are demanding 50 cents on the dollar, which they say mirrors the value of concessions being negotiated with the United Auto Workers, said people familiar with the talks. If GM cannot reach a deal on concessions with bondholders and with the UAW, the government could recall the $9.4 billion GM has already received and effectively force the automaker into bankruptcy. A source familiar with talks said negotiations are ongoing and proposals are being exchanged among the parties.

Newspaper Web Site: http://www.detroitnews.com (END) Dow Jones NewswiresFebruary 12, 2009 06:17 ET (11:17 GMT)