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#10 (permalink) |
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Member
Data registrazione: Apr 2007
Messaggi: 93
Popolarità: 211996 ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
April 27 (Bloomberg) -- General Motors Corp. bondholders
find the automaker’s offer to exchange their $27 billion in debt for equity unlikely to succeed, according to a person familiar with the committee representing creditors. That’s because the offer by GM, the biggest U.S. automaker, treats bondholders worse than other claimants, such as unions, said the person, who declined to be identified because the discussions are private. At least 90 percent in principal amount of the notes must be exchanged to satisfy the U.S. Treasury and avert a bankruptcy, Detroit-based GM said today in a statement. Bondholders are being asked to swap all their claims for 10 percent of the equity in the reorganized company. The offer is contingent on cutting at least half of GM’s $20.4 billion of obligations to a United Auto Workers retiree-medical fund through a debt-for-equity exchange that would give the group as much as 39 percent of common stock in GM. The bondholder committee, whose members include San Mateo, California-based Franklin Resources Inc. and Loomis Sayles & Co. of Boston, hasn’t yet come up with a formal response and expects to try to negotiate a better offer, the person said. The committee has been in contact with about 100 institutions representing about $12 billion of GM bonds, according to the person. |
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