[Kieri]

From everything I've heard, this will force Government Motors into bankruptcy, Chapter 11.

[Lonesome in Massachussets]

There must be a downside.

[eureka!]

Good. They need the BK for a cram down on the unions which is what killed them. Otherwise, watch tax $$ fund the unions for decades to come...

[KarlInOhio]

As GM goes, so goes America - In the current case that direction is socialist.

[Tarpon]

In a real bankruptcy, one where you hope to remain viable and fight another day, bond holders go to the front of the line ... Not first out the rabbit hole

[Abathar]

"GM's offer is inadequate and shows favoritism to the United Auto Workers union"

Of course it does, now.

[longtermmemmory]

Keeping the feds out of GM as much as possible is good for GM and good for america.

[Melchior]

If the government owns the majority stake in
GM it will not go bankrupt. Instead, we, the taxpayers will end up funding a failure.

[TheWasteLand]

Shouldn’t a judge be presiding over this? The UAW has $10B and gets 39%, whereas bondholders have $27B and get 10%? How is this legal?

[Petronski]

These aren't just bondholders, mind you. Some of them are secured bondholders.

There's no way in hell they should be forced to settle for 5 or 10 cents on the dollar.

Enough with the fascist bullshit already. Time to file.

[PDMiller]

The UAW would receive about a 39 percent stake in GM if it agrees to take $10 billion in health care trust payments in stock. Bondholders will get a 10 percent stake in GM if 90 percent of its $27 billion in unsecured debt is swapped for stock.

Pretty fuzzy math, wouldn't you say!

[YOUGOTIT]

Bond holders get 10% for their $27 billion and the left wing who caused it gets 39% for a lie that says they would have gotten $10 billion for health care but when one is bankrupt there is no money to pay for health care. And the socialist get 50% of the company. So the people that have invested in bonds will be eliminated and their retirement money will be gone and given to the anti-American left. And the anti-American left who caused this in the first place will be placed in charge. I do not think that I will ever again buy a GM car.

[curiosity]

The offer it made to the bondholders would be an antrocity. It would leave the government and UAW in control of 90% of the stock, plus they would still have some debt claims. The bondholders whould only end up with 10% of the stock and have their debt claims written down to zero. It is hard to find an example of a greater financial injustice.

More than ever, it is absolutely imperative that a bankruptcy court judge resolve GM. Otherwise we will be left with a state and union owned entity permanently sucking the public teat.

[edge10]

Good on the bond holders. Zero’s sweetheart deal for the unions goes down in flames.

[2harddrive]

Obama is ALREADY paying off the Unions!!!

[4Speed]

This wasn’t an offer, it was an Attempted robbery !!

[Red Badger]

What’s good for GM is good for America...................

[bereanway]

Is the Feds total investment in GM at this point $17 billion? I can”t remeber exactly.

At any rate for roughly $17 billion the Feds get 50%, for $10 billion the UAW gets 39%, and for roughly $24.3 billion (90% of $27 billion) the bondholders get 10%???????

Welcome to Amerika, comrade.

The bondholders have no choice but to force GM’s hand. Bankruptcy would be much more equitable. Clearly robbery such as this is but one of the many reasons we can’t allow our benevolent leaders to come to our rescue.

[dawn53]

They need to reject it, it’s a raw deal for them, a sweetheart deal for the UAW!

[LibLieSlayer]

File for bankruptcy or die gm... it matters not... I am through with you after a lifetime of buying your offerings. Never again!

LLS

[throwback]

The UAW may do well in the final looting, but GM is a corpse going forward. The government is incapable of producing a product that anyone wants, and the UAW has bled it’s host into a coma from which it will not return.