General Motors Corp. and Chrysler LLC, racing to finish restructuring plans to present to the federal government, are unlikely to complete deals with debt-holders and union workers by the government-imposed deadline today. Both automakers were making progress in concession talks with debt-holders and the United Auto Workers Union, and negotiations between GM and the union ran all night into this morning, a person briefed on the talks said today. But final deals may not come until after the deadline passes, according to others who also were briefed on the situation. GM said this morning it scheduled a news conference for 6 p.m. to talk about its restructuring plans. The status of Chrysler talks was not known early this morning.
GM already has received $9.4 billion in government loans and Chrysler $4 billion. GM today will pick up the second installment of its loans, another $4 billion, according to Treasury Department official who spoke on condition of anonymity because he was not authorized to talk about the payments. The plans are supposed to outline how the automakers intend to again become viable and repay the government loans. One of the people briefed on GM’s plan said some parts, such as bondholder and labor agreements, probably won’t be complete by the time the plan is submitted to the Treasury Department later today. GM executives have said the company only has to show substantial progress by today, with the whole plan finalized by March 31.
