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GM Likely To Miss Debt Payment

General Motors Corp is unlikely to make a $1 billion debt payment due June 1 because it expects to be in the process of restructuring its debt through a voluntary exchange or bankruptcy court by that point, a spokeswoman for the automaker said on Wednesday.

GM has been given until June 1 to win sweeping concessions from creditors, including bondholders and the United Auto Workers union, under the terms of its U.S. government supervised restructuring.

Spokeswoman Renee Rashid-Merem said GM was working to offer a bond exchange that would reduce the $28 billion in debt owed to bondholders. Such an exchange could still be in progress as of June 1, precluding the bond payment, she said.