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ReutersDETROIT (Reuters) - General Motors Corp won a cost-cutting deal from its Canadian labor union on Friday, part of a package of concessions the automaker is expected to take into a federal bankruptcy court by the end of this month in a showdown with its bondholders.
GM's tentative agreement with the Canadian Auto Workers union comes a day after the embattled automaker won parallel concessions from its major union, the United Auto Workers.
The deals to cut operating costs at GM's North American factories help clear the way for the automaker to be steered into bankruptcy with the backing of the Obama administration if a longshot attempt to win over bondholders fails.
GM has been kept in operation since the start of the year with more than $15 billion in emergency federal loans and has said it will need billions of dollars in additional financing if it moves into bankruptcy.
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GM bondholders, who hold about $27 billion of the company's debt, have balked at the terms they have been offered which would give them a 10 percent stake in a restructured company.
By June 1, the Obama administration can wish GM 'mission accomplished' with another $30 billion of federal funds blowing in the wind.