GM to miss $1 billion deadline

DEARBORN, Mich., April 22 (UPI) -- General Motors Corp. Chief Financial Officer Ray Young said Wednesday the U.S. automaker would not meet a $1 billion debt payment due June 1.

The struggling company, which has a month and eight days to come up with a restructuring plan to secure additional emergency loans from the government, would either have a new deal with creditors lined up or would file for bankruptcy protection by the time the deadline comes around, he said, speaking to reporters in Dearborn, Mich., the Detroit Free Press reported.

"We're not going to make that payment," Young said. "That's part of the reason why we're going to get this thing done one way or another in 60 days."

"That's the deadline," he said.

Without a deal in place with creditors, GM has warned, it would face the possibility of default.

A week ago, interim Chief Executive Officer Fritz Henderson said a bankruptcy filing was "probable."

Young backed up Henderson's assessment, but said, "my energies are focused upon making sure we get a bond exchange."