According to the Wall Street Journal, GM has persuaded a majority of its bondholders to go along with the proposed plan of reorganization. 

General Motors Corp. moved a step closer to what it hopes will be a smooth bankruptcy process after a majority of investors holding $27 billion in the company’s bonds agreed to forgive the debt for equity in the new company, people familiar with the situation said.

A battle with the group was one of the biggest hurdles biggest hurdles GM faced in orchestrating a quick exit from Chapter 11.

The Obama administration plans to usher GM into bankruptcy court Monday as part of its ambitious effort to remake the American car industry at the tail end of its decades-long decline. President Barack Obama is expected to announce the government’s plans for GM in a speech that will try to convey the message that the government can rebuild GM and Chrysler and salvage some of the taxpayers’ investments.

The auto maker, living on U.S. government loans, faces a Monday deadline imposed by the Obama administration. GM announced Friday that Chief Executive Fritz Henderson would give a press conference on Monday in New York outlining proceedings that would likely take place.

Initially, the company said getting bondholders to agree to a debt swap was its best chance for avoiding Chapter 11. But the latest plan is designed to expedite a bankruptcy filling more than to avoid it. As part of the agreement, bondholders pledged not to oppose GM’s reorganization in court.

According to the article 54% of the bondholders or those representing them have represented that they will support the plan. It’s probably not a big deal but there appears not to be any formal binding agreement, just expressions of support so I suppose something still could go wrong in BK. Not likely but stranger things have happened.