Used to be they always did, [/quore] Really? When did judges have the time to look at the books of a company and come up with a plan for bankruptcy? I'm just curious because I can find no time when judges created the plans.
No, Obama screwed them permanently, had the case been run according to bankruptcy law they would have had delayed payments, and still would have taken a bath, but they would have gotten much more than the few cents on the dollar that they got.
Let's start with your "few cents on the dollar" claim.. What do you mean by "few cents"?
You still haven't provided us with the most basic of info to back up your claims hawk.
Based on where GM’s bonds trade, the company is worth about $53 billion right now.(aug 2010)
According to GM's filing, advisors to the unofficial committee of major bondholders which accepted the deal hold about 20% of $27 billion in unsecured bonds
According to Thursday's filing, the new offer is structured so that the portion of GM that would remain in bankruptcy would receive a 10% stake in a "new GM" that would be used to pay bondholders. The old GM would also receive the right to buy the 15% stake in the new company that emerges from bankruptcy.
The bondholders would likely receive the overwhelming majority of the old company's assets, including the shares in the new company, as part of the bankruptcy process.
In the original offer to bondholders, creditors would only receive a 10% stake in a new GM
hey also got warrants for another 15% which based on the recent price of the stock means they will get about 30- 40 cents on the dollar for their bonds.
One set of warrants covering 136.4 million shares has an exercise price of $10 with an expiration date of July 10, 2016. The other set of warrants covering 136.4 million shares has an exercise price of $18.33 with an expiration date of July 10, 2019.
From The Detroit News: http://detnews.com/article/20110419/BIZ/104190352/GM-stock-hits-new-low#ixzz1NMXfLMLF
Great, so before GM diluted them, and assuming that they did the full exercise of the warrants, and assuming that the bond holders do not need to pay any of the site cleanup costs at all of the plants that need to be dismantled the bond holders got 35 cents on the dollar at todays stock price.
And they were ******* lucky to get ANYTHING at all. Bondholders are unsecured creditors. They have no inherent right to get anything.
Quote:as are the pensioners, who so far have not taken a haircut at all but for the ones who got spun off in Delphi, who are now taking roughly 40% cuts.And they were ******* lucky to get ANYTHING at all. Bondholders are unsecured creditors. They have no inherent right to get anything.
Those who opposed the gov't bailout of Chrysler and GM were totally wrong. Couldn't have been more wrong.
Now, any company can use that as a reason to demand, and get, govt bailouts.
Totally and 100% wrong. Check the article below - many exec. pensioners have taken a direct hit and the rest of them face the possibility of doing so, if GM can't cover their costs.
Frankly, I feel perfectly comfortable saying that you don't know enough about the situation to decide what's fair and what isn't, as you've been shown to be wrong on pretty much every point of the bailout and bankruptcy. Why should anyone care what your opinion is?
Detroit is a model democrat city that Obama and his motor company should be proud of, it symbolizes everything that Obamanomics is bringing to the rest of the country. Detroit is Obama's highest achievement thus far.
Great, so before GM diluted them, and assuming that they did the full exercise of the warrants, and
assuming that the bond holders do not need to pay any of the site cleanup costs at all of the plants that need to be dismantled the bond holders got 35 cents on the dollar at todays stock price.
I am sure that you are especially impressed with how GM takes their tax holiday and converts it into "profits", which Obama then uses to claim that he was right to believe in GM. That is rich, I tell you.