White House: We don’t want to run GM

Posted on Tuesday, April 28th, 2009 at 12:56 PM EDT.

The White House said yesterday that the government does not want to run General Motors Corp., despite GM’s restructuring plan that would give the Treasury 51 percent of the company, the Detroit Free Press reported.

The swap of debt-to-stock proposed by GM on Monday must meet the approval of the Obama administration, which has set a target of 90 percent acceptance from bondholders who own $27 billion in GM debt, the Free Press said. The automaker warned that should it not reach that target, it would consider a bankruptcy where the government would buy much of GM’s assets, the paper said.

President Obama has said the administration did not want to manage an automaker the story said. “This administration and this government have no desire to run an auto company on a day-to-day basis,” White House spokesman Robert Gibbs told reporters. “It is not our desire to own or run one of the auto companies.” (Detroit Free Press)

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