GMAC said it could drop its move to become a bank-holding company if more bondholders don't agree to its $38 billion exchange offer.

The troubled firm said that current response rates are far less than what is needed to get the application approved by federal regulators.

The financing company, which reported the bank-holding plan and exchange offer last month, stated that less than 25% of the bondholders holding the GMAC and Residential Capital (ResCap) home-lending business notes being sought have backed the exchange. These holders would get new securities with the same maturity dates and interest rates.

GMAC projected that it needs close to 75% acceptance for the Federal Reserve to approve its request to become a bank-holding firm. This would allow it to access to the Treasury Department's $700 billion effort as well as other cheaper capital alternatives to stabilize its precarious state.

GMAC extended the exchange offer for the second time in a week, this time to 5 p.m. EST Friday. It also said that if it doesn't become a bank-holding company and complete the exchange offer by the end of the month, it would have a near-term material adverse effect on GMAC's business, results of operations as well as financial position.

The beleaguered firm, which is 49%-owned by General Motors Corp., has lost $7.9 billion the previous five quarters, mainly because of  problems at ResCap resulting from rising delinquencies.

Because of this, GMAC has had to support ResCap, although it has said that this isn't something that's limitless.

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