“The bonds, with a face value of about $150,000, are now trading at about a third of their original value. But once the part of the old GM still in bankruptcy is liquidated, Drew will get GM stock. His bonds will be put in a pool with about $37 billion worth of bonds and other unsecured claims, and 10% of GM’s 1.5billion common shares will be issued to bondholders proportionately to the value of their bonds.”
If the new stock is trading at 32, that will be about $5 billion for $37 billion in bonds, or about 13 cents on the dollar. He should get out now at 33 cents on the dollar?
..think the number was approx $.10 on the dollar so yes. Long term holdings is key