According to an article in the Star-Telegram, a General Motors bankruptcy seems imminent as the automaker deadline for moves closer. It’s expected that GM will file Chapter 11 bankruptcy on Monday and is preparing a package of concessions designed to help the company move through the bankruptcy process quickly. One of the main concessions is a union approved agreement that will cut GM’s labor costs and close at least seven factories.
The article said:
UAW leaders agreed to the revised contract last week that freezes wages, ends bonuses, eliminates noncompetitive work rules and ends the possibility of a strike until the next contract expires in 2015.
GM is still hoping for a bondholders’ agreement that would allow the automaker to swap unsecured debt for stock. But analysts agree that it is probably too little too late as GM heads towards bankruptcy on Monday. GM is also expected to announce which 14 assembly, parts stamping, engine and transmission factories will be closed as part of its bankruptcy restructuring plan. The closures will result in 21,000 job losses pushing the unemployment rate even higher especially in cities dependent on the automaker.