Statement & Rumor: GM to close plants this summer and skip bond payment

GMx  The news is somewhat troubling today for General Motors as published reports suggest that GM will:

1) Will close US plants for up to 9 weeks this summer and

2) The US automotive giant "may not make a $1 billion bond payment on June 1 if it doesn't finish a debt-for-equity exchange by then."

According to the Associated Press:

"The troubled auto giant plans to make the exchange offer soon to
bondholders. General Motors Corp. has $28 billion in unsecured bond
debt. The offer could come as early as next week.

GM says in a
statement it would not make the payment if the exchange is still in
progress June 1. The company also could miss the payment if it enters
bankruptcy protection."

And according to another Associated Press story GM plans to close US plants for up to nine weeks this summer:

"The people did not know exactly when the shutdowns would occur, but
both say they will include the normal two-week closure in July to
change from one model year to the next. Neither person wanted to be
identified because workers have not been told of the shutdowns.