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| Version 1 | Version 2 |
|---|---|
| US begins GM bankruptcy planning | US begins GM bankruptcy planning |
| (10 minutes later) | |
| General Motors and the US Treasury have improved the offer to GM's bondholders, as they prepare for the firm's move into bankruptcy protection. | General Motors and the US Treasury have improved the offer to GM's bondholders, as they prepare for the firm's move into bankruptcy protection. |
| Bondholders with $27bn (£17bn) of GM debt are now being offered the option to buy an extra 15% of GM shares as part of a proposed bankruptcy deal. | |
| This is on top of the 10% they had previously been offered. | |
| If bondholders back the new offer, it will allow GM to exit bankruptcy protection more quickly. | If bondholders back the new offer, it will allow GM to exit bankruptcy protection more quickly. |
| The US car giant is expected to apply for bankruptcy protection by 1 June. | The US car giant is expected to apply for bankruptcy protection by 1 June. |
| GM said it had already secured the backing of 20% of bondholders for the new offer. | |
| German row | German row |
| Meanwhile efforts are continuing to secure the sale of GM's main European business Opel, and its UK brand Vauxhall. | |
| German Foreign Minister Frank-Walter Steinmeier said he had received assurances from US Secretary of State Hillary Clinton that the US government would increase its support to help secure the sale of Opel, GM's main European business, which has its headquarters in Germany. | |
| See GM production centres in EuropeEnlarge Map | |
| Berlin had been due to announce its preferred bidder for Opel, and its UK Vauxhall brand, on Thursday, but it was forced to cancel its decision after GM revealed that Opel would need an extra 300m euros ($415m; £260m) in short-term funding. | Berlin had been due to announce its preferred bidder for Opel, and its UK Vauxhall brand, on Thursday, but it was forced to cancel its decision after GM revealed that Opel would need an extra 300m euros ($415m; £260m) in short-term funding. |
| German Economy Minister Karl-Theodor zu Guttenberg was critical of GM's last-minute request, calling the move "pretty scandalous". | German Economy Minister Karl-Theodor zu Guttenberg was critical of GM's last-minute request, calling the move "pretty scandalous". |
| He also criticised the level of involvement of the US Treasury Department, describing it as "marginal, to put it politely". | He also criticised the level of involvement of the US Treasury Department, describing it as "marginal, to put it politely". |
| Berlin also announced that US investor Ripplewood Holdings had pulled out of the race for Opel, leaving Italy's Fiat and Canada's Magna in the front seat. | |
| There had also been a last-minute expression of interest from Beijing Automotive Industry Corp (BAIC), but German officials said that their focus was on Fiat and Magna. | |
| The sale of Opel is a key part of GM's plans to restructure its business. | The sale of Opel is a key part of GM's plans to restructure its business. |
| The German government expects to receive the extra information it needs by Friday, when talks will reconvene in Berlin. | The German government expects to receive the extra information it needs by Friday, when talks will reconvene in Berlin. |