Posted on 05/28/2009 7:45:13 AM PDT by Big_Monkey
General Motors said in a regulatory filing on Thursday that it has proposed a new deal to a committee representing many of its largest bondholders, offering an equity stake of as much as 25 percent in the restructured automaker if bondholders don’t oppose G.M.’s reorganization plan.
The filing also fills out many of the details of that plan, crafted under the eye of the Treasury Department, which would be G.M.’s majority owner once it emerged from bankruptcy protection with a 72.5 percent stake.
G.M. also confirmed that the government would provide more than $50 billion in bankruptcy financing to see the company through its Chapter 11 filing. What will emerge, through an asset sale known as a 363 transaction, is a newer, slimmer G.M. with about $17 billion in debt.
(Excerpt) Read more at dealbook.blogs.nytimes.com ...
If they are going to file bankruptcy, why are so many people trading the stock? Want the stock be worthless after they file?
There's no doubt that there are shenanigans going on that have not been seen since the days of the great railway expansion.
"... You'll take what we say, you'll smile to the public, and then you'll keep your traps shut. We will give you what we feel like giving you, when we feel like giving it to you, and we'll not order the Justice Dept to launch full investigations into your firms, which would require a freeze of all your accounts until our forensic accountants finish their investigations is 18-36 months.... unless they find something. So... what do you say?"
As goes GM, so goes the country! ...or so a wise man once said! Beck said it best yestidy....GM’s founder was an entreprenneur who understood failure....and would be dead set against bailout, of course.
Gee, now who would those folks be...?
"A GM for every American—let that be our aim. That is what we want to achieve. Will all of you help in that; it shall be our way of saying 'thank you' to the One."
The title of the article doesn’t match the context of the article.
The article says a deal was reached.
The text says a deal was proposed.
I hope the bondholders didn’t cave in to this. The reprecussions would be very damaging for all investments.
retirement funds, municipal pension funds...
I've seen other reports this morning, both in print and on TV, that have quoted the Ad-Hoc organization representing the bond holders. They make it clear in their statement that they've decided against litigation and have agreed to the latest deal. FWIW.
“The title of the article doesn’t match the context of the article.”
Yes. This may be the expected, disgusting attempt to make the bondholders out as the bad guys. “We’ve got everything worked out to save all these jobs. You’re not going to stand in the way of all these families are you?”
I am altering the deal. Pray I don't alter it any further.
Ah, but which ones? Inquiring minds want to know :) And the MSM is displaying a deplorable lack of curiosity.
Several sites are speculating that these are shorts or people holding onto the end, hoping that chapter 11 is averted. Several traders that were asked about this couldn't, however, explain why anyone would buy shares today!
Indiana retire teachers (I’m one) and state police pension are two of them.
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