Update – GM on the Brink – Bondholders turndown equity/debt exchange- Hourly Buyout Offer 140k- Bloomberg

Bondholders Steer GM’s Fate – GM is Offering Bondholders 10% Stake for $27 Billion in Debt (Bloomberg News)

At the end the analyst notes the promise not to strike til 2015 by GM, since they will be running the company I can see how a strike would be somewhat awkward….

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Bondholders turned down the IMO insulting offer on the debt/equity exchange

…”The participation (in the bond exchange) is very small,” one of the sources said. “Everyone realizes this is going to bankruptcy court.”

Most of the bondholders expect GM to file for bankruptcy some time between the expiration of the tender offer and before June 1, the sources said….

…The UAW agreed to take 17.5 percent of common stock in a restructured GM, a person familiar with the terms told Reuters. The union would also be paid $6.5 billion in preferred stock and would be granted a $2.5 billion note….

…As part of the plan, GM will offer buyouts to all UAW employees. Workers with 20 years or more will be offered $115,000 and a $25,000 voucher toward purchase of a new GM vehicle…

Hanging by a Moment – Lifehouse

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May 26, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Music, Obama Administration, Politics. Comments off.

GM Cuts 21,000 hourly jobs in the US….

So glad we gave them that 15.4 billion to save jobs (to GM alone)….wait, wha’ happened? And taxpayers will STILL have to pay the pension benefits if they go to bankruptcy…sucks…PBGC covers unions? but why?

GM Presser LIVE now, watch via CNBC streaming here


…announced plans to slash plants, hourly workers and dealers and to eliminate its Pontiac brand in an effort to meet government demands for a quicker and deeper restructuring….

…said the new plan called for deep cuts by the end of 2010: reducing the number of U.S. plants to 34 from 47, slashing the U.S. hourly workforce by about 21,000 to 40,000 and cutting its dealer network to 3,605 from 6,246…

Big political firestorm will now ensue over which states will have plant closures and which dealerships will get the axe..lobbying like crazy on the hill…Maxine Waters will go wild if they try to close ‘minority run’ dealerships in CA…and there are state laws on dealer franchises to deal with as well….

April 27, 2009. Tags: , , , , , , , , , , , , , , . Big 3, Economy, Labor Department, Obama Administration, Politics, TARP, Uncategorized, Unemployment Statistics. 3 comments.

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