Bankruptcy could lead to more General Motors dealership cuts - Dayton Business Journal:

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GM (NYSE: GM) said that its offer to bondholderas totrade $27.2 billion of unsecuredc debt for company stock failed to satisf the debt-reduction requirement in its loan agreements with the . The Detroigt automaker confirmed that the principal amount of notesa tendered was substantially less than the amounfGM required. The offe r to bondholders expiredat 11:59 p.m. EDT Tuesday. The company’sd board will meet to discuss thenext step, which many analysts expect to result in a bankruptcy The federal government alreadg has loaned GM more than $19 billion.
GM dealers who thought they had months to wind down their businessex after being told the automaker plansd to drop them could face much speedier shutdowns if GM seekxbankruptcy protection, experts say. GM told some 1,100 dealeras two weeks ago they won’t have their franchiswe agreements renewed after they expiresin 2010. Other dealers who believed they escapeed the initial purge could be back at risk as experts say. Under Chapter 11 the bankruptcy court mightorder GM's dealer network trimmex even further.