DETROIT, March 28 (UPI) -- General Motors Corp. is unlikely to meet the U.S. government's March 31 deadline for wringing concessions from workers and bondholders, analysts say.
The company has succeeded in buying out 7,600 autoworkers, with sources telling The Wall Street Journal that another 10,000 could be let go under an agreement with the United Auto Workers union. But the company still needs to convince the UAW to bargain on restructuring $20 billion in healthcare benefits for retirees to meet its cost-cutting goals, the newspaper said.
The UAW has also told GM negotiators it won't negotiate on a health plan until corporate bondholders, who hold $27 billion in unsecured debt, offer more concessions. Under the terms of government loans to the ailing automaker, GM is expected to slice its unsecured debt by two-thirds by offering a debt-for-equity exchange, the Journal said.
The Bush administration imposed the March 31 to as part of its $13.4 billion in emergency loans to the company, along with $4 billion for Chrysler LLC. President Barack Obama's auto-industry task force, however, appears willing to extend the deadline by 30 days, sources told the newspaper.
The Obama administration's auto task force was expected to unveil its financing plans for industry on Monday,
