General Motors (GM) Bondholders Pushing For More
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General Motors (NYSE: GM) bondholders are requesting more money in exchange for forgiving billions in debt and are threatening to push the company into bankruptcy if they don't get it, according to reports from the Detroit News.
In order to satisfy terms of the government bailout, GM is working with bondholders on a complicated debt exchange to cut its debt by two-thirds to $9.2 billion. To help get there, bondholders would have to accept 30 cents on the dollar, but they are demanding 50 cents on the dollar, which would mirror the value of concessions being negotiated with the UAW.
If GM cannot reach a deal with bondholders and the UAW government could recall the $9.4 billion GM has already received, forcing the automaker into bankruptcy.
Link to Detroit News Article
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Why is Rick Wagner still CEO?
Cindy on Feb 12, 2009 11:16 AMI cannot believe Rick Wagoner is still CEO of GM. Any other person who dropped their stock value from $64 when he started to less than $3 today would be out. Could you imagine if Rick was a woman CEO. Do you think the male dominated GM would have a woman stay on if she dropped the stock value like Rick did?