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TheStreet Open House

GM, Chrysler Rush to Meet U.S. Deadline

By Tom Krisher and Ken Tomas

DETROIT -- General Motors (GM) and Chrysler, racing to finish restructuring plans to present to the federal government, are unlikely to complete deals with debtholders and union workers by the government-imposed deadline on Tuesday.

Both automakers were making progress on Monday in concession talks with debtholders and the United Auto Workers Union, but final deals may not come until after the deadline passes, according to people briefed on the situation. GM said Tuesday morning it scheduled a news conference for 6 p.m. to discuss its restructuring plans.

GM already has received $9.4 billion in government loans and Chrysler $4 billion. GM will pick up the second installment of its loans, another $4 billion, on Tuesday, according to a Treasury Department official, who spoke on condition of anonymity because he was not authorized to discuss the payments. Ford (F) ahas not received government loans.

The plans are supposed to outline how the automakers intend to again become viable and repay the government loans.

Two people briefed on the GM plan reported progress Monday toward a deal with the United Auto Workers. Both spoke on condition of anonymity because the negotiations are private.

But UAW Legislative Director Alan Reuther said Monday he does not expect labor agreements in time for Tuesday's deadline.

One of the people briefed on GM's plan said some parts, such as bondholder and labor agreements, probably won't be complete by the time the plan is submitted to the Treasury Department late Tuesday. GM executives have said the company only has to show substantial progress by Tuesday, with the whole plan finalized by March 31.

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