U.S. President Barack Obama's automakers task force on Monday welcomed plans by General Motors for a bond exchange aimed at reducing the company's debt.
"Today's bond exchange filing represents an important step in GM's effort to restructure its company," the task force said in a statement.
"The interim plan that GM laid out in this filing reflects the work GM has done since March 30 to chart a new path to financial viability," the statement said, but it said the administration had made no final decision regarding GM.
In a filing to the Securities and Exchange Commission, the company said it was offering to exchange about $27 billion of its notes for common stock to cut costs.
GM is facing a June 1 deadline to come up with a plan to make deep reductions in debt, labor costs, dealership network and brands to return to profitability.
"We will continue to work with GM's management as it refines and finalizes this plan and with all of GM's stakeholders to help GM restructure consistent with the president's commitment to a strong, vibrant American auto industry," the auto task force statement said.
