GM to launch bond offer

DETROIT (AP) — General Motors Corp. is preparing to launch a public bond-exchange offer soon so the company can start slashing its debt, even without an agreement from a committee representing large institutional bondholders.

The Detroit automaker has been working on a plan to wipe out most of its $28 billion unsecured debt by June 1 to avoid bankruptcy.

The company has thousands of bondholders who have not been privy to talks with the committee but must soon decide whether to participate in an offer and ensure they get at least a small amount of their investment back. They could also hold on to their bonds but risk ending up empty-handed if GM can’t cut enough debt and must restructure in bankruptcy court.

“We are working on launching a bond exchange as soon as we can,” GM spokeswoman Julie Gibson said Thursday. “We have a large pool of people we need to reach, and the only way to do that is through a public offering.”

She declined to reveal any details about when the offer would be announced or what its terms might be.

GM scheduled a conference call this morning for Chief Executive Fritz Henderson to update reporters on the company’s restructuring efforts. Besides cutting its debt, GM must get concessions from its unions and accelerate plans to cut jobs and other costs if it wants more government aid.