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

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GM (NYSE: GM) said that its offer to bondholders totrade $27.2 billion of unsecured debt for companuy stock failed to satisfy the debt-reductionj requirement in its loan agreementsw with the . The Detroit automaked confirmed that the principal amount of notes tendered was substantiallty less than the amountGM required. The offer to bondholderxs expiredat 11:59 p.m. EDT Tuesday. The company’s boardr will meet to discuss the next which many analysts expect to result in a bankruptcy filing.
The federal government already has loaned GM morethan $19 GM dealers who thought they had monthsa to wind down their businesses after beingb told the automaker plans to drop them could face much speedietr shutdowns if GM seeks bankruptcy experts say. GM told some 1,100 dealers two week ago they won’t have their franchiss agreements renewed after they expirwin 2010. Other dealers who believed they escapesd the initial purge could be back at risk as experts say. Under Chapter 11 protection, the bankruptcty court might order GM's dealer network trimmed even further.