GM Tells SEC Deal With Bondholders, UAW Unlikely ANN ARBOR, MI (Michigan Radio) -
General Motors filed documents with the Securities and Exchange Commission this week indicating it does not expect to reach deals with its union and bondholders by the deadline next week.

It's another sign the company is heading towards bankruptcy.

GM set a deadline of next Tuesday for bondholders to exchange their bonds for stock in the company.

The U.S. Treasury says 90% of GM's bondholders must agree to the exchange.

GM also has to reach a deal with the UAW to cut its labor and retiree health care costs.

The company told the SEC it doesn't expect to have the agreements in place by the deadline, and it will announce on Wednesday if it will extend the deadline or not.

The U.S. Treasury will require that GM file for bankruptcy if the deals aren't reached.

It appears increasingly likely that GM, one of the world's biggest companies, will go into bankruptcy on or before June 1st.

© Copyright 2009, Michigan Radio