Amazing << Hear this. Feel this, and tell me that this isn't music.
Oh, dear...
Posted on 03/22/2009 3:59:30 PM PDT by rgr
Text of GM bondholder letter to White House panel (Reuters) - The following is the text of a letter sent by financial and legal advisers to GM bondholders on Sunday raising concern about General Motors Corp's (GM.N) debt restructuring talks to date.
The letter was addressed to U.S. Treasury Secretary Timothy Geithner, White House economic adviser Larry Summers and two other members of the U.S. autos task force: Steve Rattner and Ron Bloom, former investment bankers who have been advisers to the White House autos panel.
"On behalf of the ad hoc committee of General Motors bondholders, we write today to thank you for meeting with us on March 5 and for considering the welfare of the thousands of investors who own GM bonds.
GM bondholders comprise a wide range of individuals and institutions, including mutual funds, pension funds and a very significant number of retail holders. GM bondholders are not a collection of "Wall Street banks." Many of these bonds are owned by average citizens, who purchased them to support their own retirement and college expenses and other critical needs.
Most of these bonds were issued when GM was an investment grade rated company as a safe way for individuals and conservative institutions to invest for the future.
(Excerpt) Read more at reuters.com ...
FREE TRADE WILL KILL YOU
http://www.dailymotion.com/relevance/search/lou/video/x2a7gh_lou-dobbs-china-manufacture-in-mexi_news
CEG deal with French utility OK’d (full ownership control of a U.S. nuclear plant foreign entity)http://www.freerepublic.com/focus/f-news/2190444/posts
WORLD GOVERNMENT
http://video.google.com/videoplay?docid=1590858026591557284&hl=en
is anyone watching the VIDEO?
No overpriced Union Crap will kill you.. The dead three was going down way before NAFTA...
Boo hoo. They were investment grade, but not risk free. A bailout of GM is primarily a bailout of the bondholders. This is exactly why GM needs to go through Chapter 11.
We find out last few days Goldman won big from the AIG break down. They keep demanding additional money for collateral and AIG could not deliver.
who are the biggest GM bondholders ?
The biggest bond investor of all, Pimco, has resigned from the investor committee negotiating with General Motors, despite being one of GM’s largest bondholders. And I don’t like the way that Pimco’s Bill Gross is trying to paint this as some kind of win for the little people:
“We’re just not good committee members,” Bill Gross, Pimco’s co-chief investment officer, said in an interview yesterday from his Newport Beach, California-based office. “We have the interests of our clients more at heart than the interests of particular corporations or even the government, I guess, so it’s best that we simply look at the situation from afar as opposed to from inside.”
j.P. Morgan analyst Himanshu Patel said in a note for clients on Friday that the terms of the debt swap for bondholders were ‘unlikely to succeed’ unless the Obama administration offered a guarantee on the remaining debt.
‘We continue to believe that bondholders may be looking to the federal government to guarantee new, smaller face value bonds,’ Barclays Capital analyst Brian Johnson said in a note.
Johnson said the government could make the deal more appealing for bondholders by guaranteeing new GM bonds at a payout of 40 cents on the dollar. But by doing so, the amount of GM debt guaranteed by taxpayers could rise to $42 billion, including direct loans, he said.
Any meeting between the task force and bond representatives would cover a range of issues around GM’s restructuring, the person said.
GM debt holders are represented by a 10-member committee, including Franklin Templeton Investments, Fidelity Investment and Loomis Sayles & Co.
The UAW is owed roughly $20 billion in cash from GM for a retiree healthcare fund. It faces pressure from GM to take half of that in equity under the terms of GM’s bailout.
Foreign banks
Then that is what will be done. If $52 billion or $104 billion or $208 billion is needed to save the UAW, the Kenyan manchild will do it.
“It (the framework) provides the best chance ... of completing an out-of-court restructuring by securing a high level of acceptance among a diverse group of GM bondholders — from mutual funds to pension funds to retail bondholders,” the statement added.
paid off the Foreign banks
Pimco is among the biggest holders of GM bonds, behind Franklin, Capital Research & Management Co. and Fidelity, Bloomberg data show. Pimco owns more than $138 million of the debt, according to Bloomberg data based on regulatory filings in September. Its largest holding is 39 million euros ($50 million) of GM’s 1.5 billion euros of 8.375 percent bonds due in 2033, according to Bloomberg data.
Those bonds, part of a $13.5 billion sale of dollar-, pound- and euro-denominated debt in 2003, closed today at 16 cents on the dollar to yield 51 percent, down from 73 cents on the dollar a year ago, according to Bloomberg data.
“the Kenyan manchild” I like it. Is that original?
Sadly, no.
But I do WISH I’d invented it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.