Source:
Salon.com/APGM preparing to make official bond exchange offer
By KIMBERLY S. JOHNSON Associated Press Writer
Apr 16th, 2009 | DETROIT -- General Motors Corp. says its preparing to launch a public bond-exchange offer that would let the company start slashing its debt, even without an agreement from a committee of large institutional bondholders.
The Detroit automaker has been working on a plan to wipe out most of its $28 billion unsecured debt by June 1 to avoid bankruptcy.
GM spokeswoman Julie Gibson said Thursday that the only way to reach the company's thousands of bondholders before the government deadline is to formally offer a debt exchange and see who accepts it.
She declined to reveal any details about the terms of the offer.
Some of GM's largest bondholders formed a committee to negotiate a debt exchange with the company. But they haven't met with the company since March, and its unclear if they will have any say in GM's offer.
Read more:
http://www.salon.com/wires/ap/business/2009/04/16/D97JOK984_gm_bondholders/index.html
I presume it means to swap debt for equity (stock).