This was only a matter of time. Everyone from inside and outside GM assumed that the company would default on its debt and likely go bankrupt barring some miracle.

But now it's official. The company's CFO says the firm will not make its June 1, $1 billion debt payment reports WSJ.

The announcement comes as smaller rival Chrysler appears headed for liquidiation.

Update: The company says it will have an open debt-for-equity exchange offer open for bondholders on June 1, which is the date that the government has given it to complete restructuring.

Presumaby the outcome of the Chrysler restructuring/bankruptcy will have some effect on the mood of GM's bondholders and what they're willing to accept.