GM's Last Stand: UAW meets today, bondholders remain biggest challenge

What seems to be the most important week in General Motor’s history, is off to a good start. Canadian Auto Workers (CAW) voted 86 percent in favor of a new cost-cutting deal with GM that would assure the company’s feature in Canada. However, in the next five days, GM needs to ratify its terms with the UAW and have a major showdown with bondholders to avoid one of the largest corporate bankruptcy filings ever.

As most of us took the day off to celebrate Memorial Day yesterday, a source familiar with the matter said that the U.S. Treasury was preparing to loan GM $30 billion in debtor-in-possession financing and exit financing. The loan would bring GM’s total federal financing to...
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sigmabody - 5/26/2009 12:47:45 PM

+3 Boost

Of course the bondholders are the biggest obstacle to GM's restructuring plan; they are the ones getting railroaded by the government, screwed out of their legal rights, and trampled over. It would be like saying the largest obstacle to a gang rape is the willing cooperation of the victim; all the rapists have agreed on terms, and are ready to proceed.

pageman - 5/26/2009 2:36:22 PM

0 Boost

That was awesome !!!