A group of bondholders for General Motors presented a plan for restructuring the company’s debt through equity swaps to President Obama’s auto industry task force that they say will help the automaker avoid bankruptcy. Automotive News reports:
 

In a statement, advisers to the ad hoc committee of GM bondholders said the framework plan for a debt-to-equity exchange was “consistent with the government’s restructuring requirements under the terms” of emergency government loans provided to the automaker.

“It (the framework) provides the best chance … of completing an out-of-court restructuring by securing a high level of acceptance among a diverse group of GM bondholders — from mutual funds to pension funds to retail bondholders,” the statement added.

The plan, which was presented to the autos task force and GM several weeks ago, “is one of several options on the table that seeks to achieve a successful out-of-court restructuring,” the statement said.

A member of the administration task force recently complained that the bondholders were being “quite difficult” in negotiations. The bondholders have complained that they were expected to make much deeper concessions than the UAW in helping the automaker survive the current downturn in sales.