GM Bondholders Raise Concerns

March 30, 2009

The committee representing General Motors bondholders and its advisers convened a conference call on Monday to discuss the next steps for the automaker's debt restructuring.

GM has offered bondholders 8 cents on the dollar in cash, 16 cents on the dollar in new, unsecured debt; and a 90 percent stake in the automaker.

With about $28 billion in debt to bondholders, the GM offer made to bondholders about a week ago would translate into $2.2 billion in cash, $4.3 billion in debt and an additional stock-based payout in a recapitalized company that would all but wipe out current stockholders.

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