General Motors unlikely to make US government loan deadline

General Motors Washington - With a Tuesday deadline looming for its survival plan, General Motors appeared to be seeking a delay as it juggles demands by bondholders and unions, the Wall Street Journal reported Friday.

The country's largest car maker, which received a government loan lifeline of more than 13 billion dollars last year, was to have taken certain steps in its viability plan by Tuesday.

But GM could bump up against the deadline and receive an extension of 30 days, several people briefed on the matter told the Journal.

Chrysler motors, the country's third largest producer, is on a 4- billion-dollar lifeline under a similar rescue programme.

The issues holding up GM include unresolved disputes with the United Auto Workers over its health plan.

Under terms of the government loans, GM is also expected to cut its unsecured debt by two-thirds, by offering a debt-for-equity exchange, the Journal reported. But it has not reached agreement with the bondholders yet.

On a positive note, about 7,500 GM union workers had accepted buyouts as part of the restructuring efforts, the carmaker said Thursday.

The United Auto Workers members who accepted the deal make up more than 10 per cent of the organized labour at GM plants and most will leave the company by April1. dpa

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