Bondholders not in Agreement over GM Sale
June 20, 2009 by Mark Ellis
Filed under Business
While the majority of GM bondholders are certainly in favor of GM’s plan to quickly sell off all of its assets in bankruptcy court, a ragtag group of bondholders called the “Unofficial Committee of Family & Dissident GM Bondholders” has expressed its disdain for the plan. Yesterday, the group filed a formal objection to the court.
GM’s proposal involves section 363 of the U.S. bankruptcy code, which stipulates the procedure for an accelerated “363 sale” of the company’s assets. That means that GM intends to completely avoid the standard Chapter 11 bankruptcy protection plan.
Instead of GM’s speedy sale plan, the group has proposed a plan that would allow GM to reorganize itself extremely quickly, within 60 to 90 days, and then emerge as a revitalized company, all under bankruptcy protection. The group, which represents about 1,500 bondholders whose combined value is more than $400 million, has stated that it feels excluded from the entire process.
Image: Flickr
Somebody fail, all ths balilout is making me ill. Fake bankrutpcies, lobbiest/bribbery, Any how, seems GM is requestion the rest of the added 33 billion. Where is this going? Seems like not gonna have any money to run the wothless car company next year, either. We sre gonna loose 100,s of billions and not even build a car. Pitiful comes to mind
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They don’t want t be called back, they are getting paid all summer to not build cars. Glad the UAW did away with some vacation time, casue having 3 months off with most pay sounds good to me. When is this madness gonna stop. We are so gonning to loose and loose again. Fold this POS and let it grow back normally. Where have all the billions gone while factories are idle?