Saving GM or Saving American Jobs?

Thanks for the link (0.00 / 0)

Hmm...no sir...I don't like that at all.

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by: Muskegon Critic @ Wed May 13, 2009 at 14:40:02 PM UTC

For Bondholders... (0.00 / 0)

GM is better off going into bankruptcy.  

Bondholders are being asked to swap debt that once had a face value of $27 billion-and now has a market value of about one-tenth that amount-for a chunk of stock in GM. If a deleveraged GM manages to make a go of it, that stock could turn out to be worth a fair chunk of change. If GM doesn't make a go of it, the stock could turn out to be worthless.

As Sender reports, many bondholders have bought insurance on the bonds in the form of credit default swaps, which pay off only in the event that GM formally defaults on its debt. The Depository Trust & Clearing Corp., Sender reports, "estimates that CDS holders would receive net payments of $2.4 billion if GM were to default."

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by: rich @ Wed May 13, 2009 at 21:22:38 PM UTC