Facing a looming June 1 deadline to reach agreements with the bondholders and union, General Motors
may have failed to come to terms with the former
, but it has reportedly arrived at a tentative concessions agreement with latter. The deal puts the United Auto Workers
' trust fund in charge of future health care costs in exchange for a 17.5% stake in the reorganized General Motors. The U.S. Treasury is still expected to take the controlling stake in the reorganized company.
In addition, the agreement calls for GM
to put $10 billion in assets in the UAW's
Voluntary Employee Beneficiary Association (VEBA) and to issue the union a $2.5 billion note to be payed in three installations in 2013, 2015, and 2017. With less than one week to go before a likely Chapter 11 bankruptcy, GM remains in survival mode.
[Source: Automotive News
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