by Calculated Risk on 5/26/2009 02:03:00 PM
Tuesday, May 26, 2009
A couple of stories ...
From Reuters: GM Bondholders Reject Plan, Setting Stage for Bankruptcy
General Motors has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy ...And from The WSJ: UAW Discloses Terms of GM Deal
Reuters' sources said GM will likely file for bankruptcy some time after midnight Tuesday, but before June 1.
According to the WSJ, the UAW Voluntary Employee Beneficiary Association (VEBA) was owed $20 billion, but will take $10 billion in cash, a note for $2.5 billion (payable over the next 7 years), $6.5 billion in preferred stock, and own 17.5% of GM - plus a warrant for 2.5% more of GM's new common stock.
It sounds like the bankruptcy will be filed this week.
Posted by Calculated Risk on 5/26/2009 02:03:00 PM