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GM on road to bankruptcy protection

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GM on road to bankruptcy protection

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General Motors continues to move towards bankruptcy protection from its creditors, but has now persuaded its major bondholders to accept an improved deal whereby they would get more shares in the reorganised company in exchange for the money GM owes them.

That could pave the way for a so-called fast-track bankruptcy, from which GM would emerge as a new debt free company 90 percent owned by the US government and the carmaker’s unions. As US government official said it’s expected GM would spend only 60 to 90 days in bankruptcy.