10:58, 28 April 2009 | GMT +5
GM plans major revamp to get government aid
BEIJING. April 28. KAZINFORM General Motors Corp said Monday that it will cut 21,000 factory jobs in the United States by next year, phase out its Pontiac brand and ask the government to take company stock in exchange for half of GM's government debt as part of a major restructuring effort needed to get more government aid; Kazinform refers to Xinhua.

The struggling auto maker also said it will offer 225 shares of common stock for every US$1,000 in notes held by bondholders as part of a debt-for-equity swap. The announcements came in a filing with the Securities and Exchange Commission.
GM is living on US$15.4 billion in government loans and faces a June 1 deadline to restructure and get more government money. If the restructuring doesn't satisfy the government, the company could go into bankruptcy protection.
GM said in a news release that it will ask the government to take 50 percent of its common stock in exchange for canceling half the government loans to the company as of June 1.
GM said the bond exchange aims to wipe away a large majority of the company's 27 billion U.S. dollars in unsecured debt. The company estimates that after the exchange, bondholders would own 10 percent of the company; Kazinform cites Xinhua.
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