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Bondholders Unite against GM Bankruptcy Deal

Chrysler's Bankruptcy predicts they haven't a chance.

by on Jun.01, 2009

A significant minority of General Motors Corporation bondholders are vowing to fight GM’s, government-sponsored re-organization plan even as the automotive giant files for bankruptcy protection.

GM Bondholders Unite says that its members are more committed than ever to stand up for their legal rights. “Bondholders are not asking for a handout or a bailout; GM’s bondholders just want a fair and equitable deal.”

“Individual investors helped build GM and this country. However individual investors have been systematically excluded from the negotiating table in the restructuring of one of America’s storied icons,” according to a statement by the group, which includes both small and large bondholders.

The existence of an aggressive group of bondholders who believe they have been disenfranchised could slow or complicate GM’s efforts to emerge from bankruptcy within the next 60 days to 90 days, but it is more likely the court will impose the proposed Treasury settlement on them.   (more…)