As I understand the situation, the secured lenders including preferred and bond holders are being offered common stock in accord with a complex formulas that will net them about $.22 on the $$ in commonstock. The UAW will get similar deal in exchange for taking on the old pension and health care stuff.
The post deal common will include another big slug I can’t remember who gets. That is possibly what the new company is offering and the government is buying.
The final result is tons of very bad common stock that is pretty much worthless.
The deal must be approved before the deadline and it is not a sure thing. There is strong sentiment among the debt holders to reject the deal, go to bankruptcy and divy up the assets to the secured or to force the trustee to honor them as first in line before all others including the government.
The person who gave Reuters the story glossed over or didn’t know the details. The story is in my view very superficial.
In a normal world, this is as it should be.
I hope the secured creditors stick to their guns, and the bankruptcy judge is a strong person who cherishes the law.