Today, General Motors (GM) announced that, following last evening's expiration of its exchange offers for $27.2 billion of its unsecured public notes and the related consent solicitations, "the principal amount of notes tendered was substantially less than the amount required by GM to satisfy the debt reduction requirement under its loan agreements with the U.S. Department of the Treasury, to meet the debt reduction objectives under its Viability Plan, or to meet the minimum tender condition of the exchange offers as required by the U.S. Treasury." As a result, "the exchange offers will not be consummated."
Separately, yesterday, the United Auto Workers (UAW) local union leadership voted unanimously to recommend for ratification a new settlement agreement that would modify the 2007 UAW-GM National Agreement as well as changes to the Voluntary Employee Beneficiary Association trust for retiree health care. Disclosure of further details of the new settlement agreement are pending the vote by UAW members scheduled for later this week. The Canadian Auto Workers union ratified a similar agreement this past Monday.