Report: UAW agrees to 17.5% stake in restructured GM, bondholders reject tender offer
Posted on 26. May, 2009 by admin in GM
In a hugely positive step for General Motors, the carmaker, together with the U.S. Treasury and United Auto Workers (UAW), reached a tentative bargain on how they’ll deal with changes to the current agreement in the face of the industry’s problems and GM’s increasingly probably bankruptcy. The details of the deal are being kept quiet until local unions ratify it later this week but a new report claims the outcome will see GM swap some equity with the UAW for its debts.
The Wall Street Journal reported today that the UAW’s trust fund for retiree health care would get a 17.5% stake in a restructured GM under the deal.
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