I still have no idea after reading this, what the hell happened that wasn’t supposed to happen.
I must be dense.
GM ‘paid’ their creditors 36 cents on the dollar to go away, so their Canadian operations wouldn’t have to go bankrupt.
The bond holders that got screwed in the original ‘bankruptcy’ cried foul! They are now going after the creditors who got paid off to get their money, since in a normal bankruptcy the bond holders come before plain creditors..................