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G^M = B^K?

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As we mentioned in the Opening Bell, GM is staring default and potentially bankruptcy in the face ("we actually need about $30 billion"). A lot of light and noise has been emanating from GM's general direction for several weeks now, but it looks like this is the main event. Of course, this isn't a surprise. GM warned last month that Deloitte & Touche might excommunicate the company from its close circle of friends, and that, certainly, sounds like the beginning of the end.
GM has until the end of March to close deals with the UAW and debt holders to qualify for government assistance (again). One wonder's if they are likely to make it that far.

GM said its creditors had agreed to waive a requirement that could have allowed them to force the automaker to repay more than $6 billion in loans because of the warning in order to allow GM to press its case for government aid.

In fact, GM has been begging for, and mostly getting, lots of waivers for call and acceleration provisions- at least until the Treasury fails to give the automaker the Goodhousekeeping Seal of Bailout Approval. And why not? The bond holders are really buying an option by laying off of GM here. That government cheese might be the lion's share of what they see. It would be interesting to know what power creditors waived with respect to forcing liquidation owing to the government involvement.

Separately, GM said in its SEC filing that its lenders had waived "call" provisions that could have forced early payment of its $4.5 billion secured revolving credit facility, a $1.5 billion term loan and a $125-million inventory financing facility.
The new waivers allow GM's lenders to call those loans if the U.S. Treasury rejects GM's restructuring plan and request for additional aid and forces it to repay the $13.4 billion it has already borrowed from the U.S. government.

Gotta love priorities.
GM warns it may be forced into bankruptcy [Reuters]