GM offers $2.2B debt-for-equity swap in return for S. Korea’s support, report says
One of the most iconic brands and corporations in the world today is General Motors. General Motors, which is based out of the Untied States, has plants and other commercial space in countries all over the globe. While General Motors used to focus heavily on sales and volume, the company has recently changed its approach and is now just as focused on technology and innovation. Along with this change, the company is changing its strategy of how it will operate in certain markets.
One area of the world that GM is changing its focus on is South Korea. Currently, the company has four plants located around the city of Seoul and employs around 16,000 people. However, the organization now appears that it is looking to close at least one of these locations.
Another major move that the company is making is the decision to try and convert some of its debt into equity. GM currently has about $2.2 billion in debt held by South Korea and would like to exchange the debt for a share of equity in the organization. This would also allow the company to have time to decide whether or not they want to continue to operate their other plants in the country.
This is not the first move that GM has made to change its focus. Over the past few years, the company has closed ore reduced operations and plants in a number of different countries across Europe and Asia in an effort to reduce operating costs.