Has anything changed?

Has anything changed?

I spent Thursday covering the General Motors story again.

I went from live-shots for our channel at the Reuters Building in Times Square, to a GM dealership on Manhattan’s west side, back to Times Square again to interview people about whether they’d still think about buying a Chevvy or Caddy … and finally onto the New York Stock Exchange for more live reporting.

I ended the day in Harlem - but that was a micro-finance story - of which more on Saturday.

What a difference a day makes in business reporting, eh?

Twenty four hours ago GM bond holders had rejected the company’s offer to give them a a ten percent equity stake in exchange for the 27 billion dollars they’d pumped into the firm … threatening to fight for their money back through the bankruptcy courts.

Now a sizeable group of bond holders has agreed to go along with GM’s plans for restructuring in return for the chance to get their hands on up to twenty five percent of the new company’s stock.

There’s a new deadline (deep joy!) 21 GMT on Saturday by which time the roughly sixty-five percent of remaining bond holders must decide if they’ll go along with GM’s offer or not.

Whatever they decide it probably won’t make much difference to GM - it’s expected to file for Chapter 11 protection on Monday anyway.

What’s changed is that now - and especially if the other bond holders can be brought on board by Saturday - the filing should be a lot more streamlined than anyone had previously dared hope.

There’s talk GM could be skinned and roasted within three months - that’s swift!

GM ceased to be the world’s biggest vehicle maker last year handing that crown to Toyota of Japan but nonetheless Monday’s filing, if it takes place as expected, will mark the end of a firm that for seventy seven years dominated the global auto industry.

What emerges will be a super slimeline operation that will be debt free and minus thousands of hourly paid workers and salaried staff who are currently on the books.

The U.S. government will own 72.5% of the firm which is expected to be known as “New GM”. It will have four brands.

Meanwhile, spare a thought for GM Europe.

Negotiations to sell the firm to the Italians or Canadians or Chinese before the parent company declares bankruptcy protection broke down on Thursday.

Workers at Opel of Germany, Saab of Sweden and Vauxhall of the UK are all fearful of losing their jobs.  As the biggest part of the GM Europe empire the Opel workers are feeling the most pleased with themselves as we go into the weekend.  But nothing is certain.

In New York on Thursday the Dow was up one percent at the end of the trading session. GM shares initially rose on news of the bond holders’ deal … but eventually closed down by three cents.

- John Terrett, New York Correspondent