General Motors (GM) 01 (Jun 08 - Jul 10 )

[kennynah]

bondholders will get next to nothing if come 1 June GM files for bankruptcy.... but the challenge is the short deadline it has to convince majority of the bondholders to agree to swap 225 GM shares for every $1000 owed to them...ie...in order to break even....GM share price has to rise to $4.44 to get on par with $1000 worth...

if i was the bondholder...accept the proposal also kana f....dont accept, lagi f...

treasury will try to broker...and at most lend money to GM...but ultimately, it is the bondholders who will determine the fate of this giant automaker...

but as i shared with a fellow huatopedian... obama will need to change his fleet of presidential cars if GM fails...likely???

but who knows...skarly china automaker sapu GM and rename it

GiveMe Geely

[kennynah]

bloomberg reported 1125pm +8 GMT, 28May09

GM to file for bankruptcy protection on 1 June 09

[kennynah]

just take a look at GM's June option chain.... very nice...very nice....to Write if have balls

[kennynah]

GM Reveals U.S. Treasury's Sale Proposal
5/28/2009 1:59 PM ET

(RTTNews) - Having failed in its endeavor to exchange $27.2 billion of unsecured public notes, General Motors Corp. (GM: News ) Thursday said that the U.S. Department of Treasury has indicated that pursuant to its bankruptcy filing, a new company or new GM incorporated and sponsored by Treasury would acquire the assets of the automaker or old GM, and bond holders will be offered 10% of the common equity apart from warrants to purchase an aggregate of 15% of the equity of New GM, subject to the receipt of statement of support.

The Detroit, Michigan-based company on the verge of seeking protection under the U.S. Bankruptcy Code and if it were to seek the court's approval for the sale of substantially all of its assets pursuant to section 363(b) of the U.S. Bankruptcy Code, the new company would agree to acquire such assets from GM per conditions in U.S. Treasury 363 Sale Proposal. The automaker, however, cautioned that the U.S. Treasury has indicated that if statements of support are not received, the amount of common equity and warrants that treasury would propose be issued by New GM to Old GM would be substantially reduced or eliminated.

GM faces a government-imposed deadline of June 1 to complete restructuring plans that would convince the Obama administration's auto task force. If the Obama administration is not convinced with GM's viability plan, the company would not get additional government aid and would be forced to file for bankruptcy protection.

Earlier this month, GM was trying to garner support from 90% of its bondholders for a debt-for-equity swap offer. With $27 billion in outstanding bonds, the company had launched an offer in April to exchange 225 shares of its common stock for every $1,000 in notes held by bondholders as part of a debt-for-equity swap. Had the exchange offering successfully concluded, bondholders would have owned about 10% of GM.

On Wednesday, GM announced the expiration of its exchange offers for $27.2 billion of its unsecured public notes and the related consent solicitations in exchange for 10% of the company's stock. The exchange offers commenced on April 27, 2009 and expired at midnight on Tuesday, May 26, 2009. The company said that no further tenders of notes will be accepted and any accepted exchange offers will be promptly returned to bondholders unconsummated.

As per the U.S. Treasury 363 Sale Proposal, GM and its debtor subsidiaries would sell substantially all of their assets to New GM which in turn would assume certain specified liabilities. Following the 363 Sale, the U.S. Treasury contemplates that approximately $27.2 billion principal amount of Notes would ultimately comprise substantially all of Old GM's debt and a significant majority of the total unsecured claims against Old GM and the New GM common equity and warrants would comprise a substantial portion of Old GM's assets.

[helios]

May 29 (Bloomberg) -- General Motors Corp. and Magna International Inc. have reached a framework agreement on a rescue for the Opel unit in Germany, according to a person familiar with the discussions.

The preliminary pact would provide the basis for Germany’s government to release 1.5 billion euros in short-term financing for Opel, said the person, who asked not to be identified because the talks are confidential.

The parties are working on a memorandum of understanding, according to the person.

Source: Bloomberg.com

[helios]

May 31 (Bloomberg) -- General Motors Corp. intends to file for bankruptcy before 8 a.m. New York time tomorrow and will name turnaround specialist Al Koch as its chief restructuring officer, according to people familiar with the plans.

Source: Bloomberg.com

[helios]

GM has been in dow average since 1925 ... this stock opened with ultra-high volatility ...

the fact is, it is not at ZERO level?!

[blid2def]

People playing pass the parcel and seeing who the dunce is who catches it when the music stops and the shares get taken off the market.

[kennynah]

GM has been in dow average since 1925 ... this stock opened with ultra-high volatility ...

the fact is, it is not at ZERO level?!

GM officially taken off DOW Component...

[kennynah]

27cents lowest....

san mei mei....got jeep bo?

instant multibagger in less than 1 day leh....