27.05.2009 21:13 RPT-UPDATE 1-US still hopeful for GM bondholder deal
WASHINGTON, May 27 (Reuters) - The Obama administration
continues to try to facilitate a long-shot debt-reduction agreement with reluctant General Motors Corp (News/Aktienkurs) bondholders despite the company's fast-approaching bankruptcy deadline, the White House said on Wednesday.
While overwhelming rejection by bondholders on Tuesday of a proposed debt-equity swap set the stage for a GM bankruptcy by June 1, the administration said it is not giving up on what industry experts believe is an element of the automaker's restructuring that is destined to be settled in court.
Gibbs was not specific on the parties involved in any effort led by the White House/Treasury Department's autos task force but said there is still work to be done.
'We're working towards -- our hope is -- an agreement with all the stakeholders involved to continue General Motors and I think we're making progress,' Gibbs said. 'Hopefully, we'll have news to report soon on that.'
With ratification of labor concessions expected this week, bondholders remain the major piece of GM's restructuring puzzle not yet in place voluntarily.
(Reporting by Caren Bohan and John Crawley, Editing by Sandra Maler) Keywords: AUTOS/OBAMA
(john.crawley@thomsonreuters.com; Washington newsroom +1 202 898 8300)
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