GM clears some hurdles as bankruptcy looms
DETROIT -- General Motors has cleared a couple of key roadblocks on the ailing U.S. automaker's route to an almost certain bankruptcy filing Monday.
Early Saturday in Berlin, Germany's finance minister said a plan was approved for Canadian auto parts maker Magna International to move ahead with a rescue of GM's Opel unit.
That news came after the United Auto Workers union on Friday ratified a package of concessions designed to reduce GM's labor costs.
The developments appeared to put in place two more pieces of the automaker's massive restructuring effort as its board of directors meets Saturday for a second day to decide what GM will do when its government restructuring deadline arrives Monday.
GM would not comment on how many investors had expressed support for the debt-for-equity swap that would give them up to 25% of a reorganized company in exchange for $27 billion in bond debt.
Bondholders had until 5 p.m. ET to register their support for the deal, which would give them up to 25% of a reorganized GM.
GM has yet to confirm it will seek Chapter 11 bankruptcy protection but scheduled a news conference for Monday in New York.
Adding another deadline, auto parts supplier Delphi said it could default on its bankruptcy loans early next week if it does not reach an agreement on the future of its bankruptcy protection case with the Treasury Department and former owner General Motors by Monday.
Delphi said in a regulatory filing on Friday that it remains in talks with Treasury and GM about its bankruptcy proceedings. It faces a Monday deadline for reaching an agreement, but is seeking an extension or waiver from its lenders.
Delphi, which was spun off from GM in 2000, has been in bankruptcy protection since 2005. GM, which relies on Delphi for crucial electronics, safety and other systems for its cars and trucks, has propped up the auto supplier with funding since then to maintain its supply of parts.
Chrysler, meanwhile, will likely have to wait until Monday to learn if a bankruptcy judge will rule that it can go forward with its plan to sell most of the company to a group headed by Italy's Fiat and take a big step toward its goal of a speedy exit from Chapter 11.
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