GM Bankruptcy Thread

Quote from walkthewalk:

Ha! My mom had an old 300E and that thing ran 300,000 miles or more, Great car. Then she decides to buy an M class SUV... We paid about 28,000 for it used and traded it in 5 years later for about five grand. I swear the thing was a lemon, nothing but problems. I thought people were full of shit when they said don't buy post-chrystler mercedes, and I learned that one the hard way. Ill never buy another mercedes...
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Ha! that's because M class was build in ALABAMA :p

http://www.popularmechanics.com/automotive/reader_rides/1271026.html
 
Soon

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Bond Holders: Do you hear that General Motors?... That is the sound of inevitability... It is the sound of your death... Goodbye, General Motors...

GM: My name is Government Motors!
 
Word is that the gov't auto board wanted GM to enter bankruptcy, but didn't want the blame. So, they structure the deal so that no bondholder in their right mind would convert their bonds, and thus, voila, GM enters bankruptcy and it's not OBAMA'S fault! It's those evil speculators fault! Another Obama twofer!
 
This is a tough one. Pay out or reboot yourself - folding is probably not an option and sooner or later someone will pop in to save the day.
 
Quote from TM1982:

How long do you guys think GM will hold the $1 level?
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No idea. With a position like this I size for a "forever" hold and don't bother looking at it very often. It will be what it will be...
 
Quote from fhl:

Word is that the gov't auto board wanted GM to enter bankruptcy, but didn't want the blame. So, they structure the deal so that no bondholder in their right mind would convert their bonds, and thus, voila, GM enters bankruptcy and it's not OBAMA'S fault! It's those evil speculators fault! Another Obama twofer!
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News stories today pushing the line that it's those bad old bond daddies forcing GM into bankruptcy.

Like I said above, make the bondholders an offer they must refuse, and then point the finger at them. They did it! Capitalism-bad! Unions-good!
 
From my reading of the 8K, the proposed bondholder deal would result in the existing common stock being worth zero.

Not a small amount, but zero.

Why is that?

According to the 8k,

http://biz.yahoo.com/e/090528/gm8-k.html

common stock in the new GM would be as follows:

72.5% to the U.S. Treasury 2

17.5% to New VEBA

10% to Old GM

My interpretation of "old GM" means bondholders.

Therefore shareholders of "old GM" get zero of the stock in "new GM".
 
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