General Motors CEO says company can still avoid bankruptcy despite daunting restructuring list

New GM CEO says company can still avoid bankruptcy

DETROIT — General Motors CEO Fritz Henderson says the automaker still can avoid bankruptcy but it has a lot of work left before the government’s June 1 deadline.

Henderson said Monday in an interview with The Associated Press that “it’s still possible” for GM to stay out of bankruptcy, and that’s the company’s preference. But he says GM is learning from Chrysler’s bankruptcy proceedings in case it can’t finish restructuring before the deadline.

A key issue for GM is getting 90 percent of its bondholders to accept a debt-exchange offer. GM is offering them a 10 percent stake in the company if they give up $27 billion in unsecured debt.

Henderson says a counteroffer from bondholders that seeks a 58 percent ownership stake is unacceptable because the government won’t let GM give them more than 10 percent.