Posted on 05/05/2009 9:06:48 PM PDT by 2ndDivisionVet
General Motors Corp on Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.
The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM, the company said.
The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM's shares could be worthless whether the company restructures out of court or in bankruptcy.
The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM's stock investors with just 1 percent of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.
GM shares closed on Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM's restructuring moves forward as described.
Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.
Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM's existing shareholders would see their stake in the 100-year-old automaker all but wiped out.
(Excerpt) Read more at globeinvestor.com ...
Sorry if you are stuck with some money parked in GM. You do not have to worry about price fluctuation anymore. GM Common stock (old issuance) is now worthless. Except as a shoe liner. They used very high quality ink, back in the day. It would not stain the insole, or your socks today.
Il Duce and....?
I agree. They really should go to prison.
Barito.
One hundred bucks in the 1930’s was a completely different animal than 2005 when I bought Helga.
A picture says a thousand words...
Perfect.
LOL! That’s it!
There was somewhat of lake east of Casa Grande and my new Explorer did well there. It also did decent in the Superstitions around Fish Creek Canyon.
You may be right, or not.
Ford vs. GM since GM got bought by Obama.
Signed,
Barack Obama, CEO
GM
p.s. Please do not attempt to liquidate any other positions you hold in the stock market until we contact you. All your base are belong to us now.
LOL, and all they'll make are Yugos. Hybrid Yugos.
Congratulations on your historic election, America.
Me also, I thought it was on purpose. LOL!
GM stock could drop like a rock tomorrow morning. It’s down over 10% in after-hours trading. The thinking is that common shareholders will be wiped out when this is all over.
“Tell me about it! $100, with low miles on it.”
Diesel?
Truly, Obamas fault.
I strongly suggest You change your Broker immediately! If You have to tell him THAT!! then your Broker MUST be Brainless!!! /s/:-) This is unfreakin Believable! In three short months, William Ayers has accomplshed with his Teleprompter reading Puppet what he had tried to do for decades............:-(
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