The Auto Board

[MWM]

GM to offer $27 billion stock-for-debt swap

By Christopher Hinton
Last update: 8:36 a.m. EDT April 27, 2009Comments: 17
NEW YORK (MarketWatch) -- General Motors Corp.


GM said Monday it intends to offer $27 billion in common stock to its debt holders as part of a restructuring plan. According to the Securities and Exchange filing, GM will offer 225 shares of common stock to each $1,000 of debt. The Detroit automaker values the offer at $27.2 billion, and has set a deadline for debt holders to respond by May 26. "Exchange offers are a vital component of GM's overall restructuring plan to achieve and sustain long-term viability and the successful consummation of the exchange offers will allow GM to restructure out of bankruptcy court," the company said in a statement.