General Motors Corp Bankruptcy Update

General Motors Corp (NYSE:GM) has still not managed to come to an agreement with bondholders over the $27 billion exchange offer, which is hoped to keep the automaker out of bankruptcy. GM filed a notice to the U.S. Securities and Exchange Commission, which they have yet to agree a deal on, and it will run out on May 26, 2009

Business Journal reports that General Motors should announce sometime this week if they are to extend the deadline. Reuters also reports that a spokesman for the creditors committee said that an offer for only 10 percent ownership was not good enough.

In the report, it says that bondholders are looking for 58 percent ownership in General Motors; the Obama administration has said that that will not happen. The bondholders are now thought to be getting ready for a GM bankruptcy filing.