Investments Experts On GM Restructure

Although GM executives would prefer to restructure out of court, investments experts say all GM is doing now is lining up majorities of stakeholders to make its reorganization move quickly.  To remake itself outside of court, GM must persuade bondholders to swap $27 billion in debt for 10 percent of its risky stock. On top of that, the automaker must work out deals with its union, announce factory closures, cut or sell brands and force hundreds of dealers out of business.

"I just don't see how it's possible, given all of the pieces," said bankruptcy expert Stephen J. Lubben, a professor at Seton Hall University School of Law.  GM, which has received $15.4 billion in federal aid, faces a June 1 government deadline to complete its restructuring plan. If it can't finish in time, the company will follow Detroit competitor Chrysler LLC into bankruptcy protection.

Excerpted from NorthCountyTimes.