The GM Europe Rüsselsheim factory originally began in 1862 when Adam Opel commenced producing sewing machines. The current modern factory was completed on the original site in Rüsselsheim, Germany in 2002.

On Wednesday, a General Motors bankruptcy filing is seen as inevitable after bondholders refused to accept equity in a restructured company in exchange for $27 billion of debt.

The debt-for-equity swap offer by GM, founded in 1908 and the world’s biggest car maker for 77 years until it was overtaken by Japanese car giant Toyota last year, was unable to win the required 90% approval of bondholders, by the time it expired on Tuesday night.

The formal decision on whether to file for bankruptcy protection is “up to the GM board to decide and that meeting is later in the week,” a GM spokeswoman said today, refusing to disclose the timing of the session.

GM sold 8.35 million cars globally in 2008; North American sales were $86.2 billion in 2008, compared with $34.4 billion in Europe, $20.3 billion in Latin America, Africa and the Middle East, and $17.8 billion in the Asia Pacific region.

The UAW trade union had agreed to cut $20.4 billion owed to a union-run health-care fund, in return for 17.5% of the new company’s shares, plus preferred stock and debt.

The bondholders were offered 10% of the restructured company.

In Europe, General Motors moved Wednesday to pool the assets of its European Opel and Vauxhall car brands for possible new ownership before meetings with bidders and government officials in Berlin.

Opel's supervisory board approved a GM Europe plan to pool its European plants, sales operations, patents and other assets, excluding Sweden's Saab unit, debt-free under German-based Adam Opel GmbH, said Karin Kirchner, a spokeswoman for GM Europe.

Talks on securing Opel’s future hosted by Chancellor Angela Merkel in Berlin later today will try to forge an agreement on placing Opel in a trust that would receive bridge financing of €1.5 billion, government spokesman Thomas Steg said.

US sales of second-hand houses rose in April boosted by foreclosure auctions and improved affordability. Distressed properties accounted for 45 percent of all sales in the month and prices were down 15 percent from a year earlier.

US sales of second-hand houses rose in April; Distressed properties accounted for 45% of all sales in the month; Prices down 15% in year

US “problem” banks rose 21% to the highest total in 15 years in the first quarter, the federal insurer FDIC said.

The FDIC classified 305 banks with $220 billion in assets as “problem” lenders at the end of March, rising from 252 with $159 billion in assets in the fourth quarter. The FDIC said its insurance fund dropped 25% in the period.

“The first-quarter results are telling us that the banking industry still faces tremendous challenges, and that going forward asset quality remains a major concern,”FDIC Chairman Sheila Bair said today in a statement.

On the markets, the Dow is down 6 points; the Nasdaq is up 0.84% and the S&P has gained 0.29%.

GM fell over 13%.

Live US Indices

French manufacturers’ confidence rose for the second month in May. An index of sentiment among 4,000 manufacturers increased to 72 from 71 in April, France's statistics office Insee said today.

The pan-European Dow Jones Stoxx 600 rose 0.73%.

The index has rebounded 33% from a 12-year low on March 9th last.

In Dublin, the ISEQ Index is up 1.2%.

CRH fell 2% and BoI rose 8.6%.

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Oil

On the New York Mercantile Exchange, oil for July delivery is trading at $62.55 up 10 cents from Tuesday's close. In London, Brent crude  for July delivery is trading at $61.89 a barrel up 65 cents.

Currencies

The euro is trading at $1.3927 and at £0.8673.

For live currency updates, check the right-hand column of the Finfacts home page.

The dollar traded at a record low $1.6038 per euro on July 15th.