(Corrects headline to read "58 pct of debt tendered" from "58
percent of debt target")
Dec 17 Auto and mortgage finance company GMAC
LLC said about 58 percent of debt has been tendered and delivery
time extended in response to investors' requests, a few days
after it sweetened the terms of a much-needed debt exchange.
The company is trying to swap $38 billion of debt for a
smaller amount of debt, preferred stock and cash that will help
it bolster capital to become a bank and qualify for capital from
the U.S. Treasury's $700 billion rescue plan.
On Sunday GMAC sweetened terms of the debt swap to a higher
annual dividend rate of 9 percent and added covenants on new
notes, including restrictions on liens and asset sales.
About $16.6 billion or 58 percent of debt has been validly
tendered, the Detroit-based lender said. It needs holders of 75
percent of the debt to agree to the swap.
GMAC also said the deadline for early delivery was extended
to Dec. 19.
GMAC is owned in part by General Motors Corp (GM.N) which in
2006 sold 51 percent of GMAC to private equity firm Cerberus
Capital Management LP [CBS.UL], owner of 80 percent of Chrysler
(Reporting by Eric Yep in Bangalore; Editing by Erica