Securing cash and working capital in short term


GM recently faced a restructure plan through bankruptcy court (Chapter 11). In addition to cutting costs by closing plants etc, the company swapped more than $27 billion in bond debt for GM stock. The US government owned approximately 60%+ of GM by some reports. Is converting debt to equity a viable means of securing working capital and generating cash flow? Are there disadvantages to this type of swap? Do you feel this is necessarily the best plan or are there other alternatives for securing cash and working capital in the short term?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Securing cash and working capital in short term
Reference No:- TGS047297

Expected delivery within 24 Hours