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GM's filing said it would announce May 27 whether it would extend the bond exchange or declare it a failure. If it fails, GM faces bankruptcy.
A GM bankruptcy filing could send shock waves across America as it further slashes employees, voids contracts with suppliers and dealerships it deems unnecessary and reduces debt owed to banks, bondholders and others, who would be forced to absorb losses.
And that's the key. They're asking for another bailout or more loan forgiveness. I'm sure Obama will provide; he's tied himself too closely to this restructuring for it to fail.