GM May Seek 1-For-100 Reverse Stock Split
General Motors says it may offer current shareholders a reverse stock split that would give them one share of new stock for every 100 shares they currently own.
Separately, GM Chief Executive Fritz Henderson said on late Tuesday that the automaker is set to resume negotiations with the United Auto Workers union this week, and it believes that everything should be on the table.
GM said in an SEC filing that the reverse split deal would be part of an agreement with the Treasury Department to swap at least half of GM's debt to the government for company shares.
The filing says both sides are still negotiating the terms of the debt swap, but the government would own at least 50 percent of the company.
GM has received $15.4 billion in government loans and faces a June 1 deadline to restructure or be forced into Chapter 11 bankruptcy protection.
Union to Move Forward
Henderson, who spoke to reporters in Washington about the UAW talks, said the deal that the union had made with Chrysler on restructuring payments due to a retiree healthcare fund was close to what GM was planning in restructuring its own debt.
Chrysler, which like GM has been operating with emergency funding from the federal government, filed for bankruptcy last week under the direction of U.S. officials and expects to emerge in as little as 60 days.
Henderson, who took the top job at GM just over a month ago, said the goal for any bankruptcy filing by GM would also be to emerge quickly from court protection.
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—AP and Reuters contributed to this story.