COMPANIES GMAC, the financial services affiliate of General Motors that is receiving up to $6bn in federal aid, will cut its debt through a much-publicised debt swap, although participation in the exchange fell short of the company’s target.
GMAC said on Wednesday that holders of about $21.2bn of existing notes of GMAC and Residential Capital, its mortgage lending unit, would exchange their debt for cash and $15.7bn in new notes and preferred equity.
