Friday, March 20, 2009

GM Bondholders

If the bondholders think they can make money with GM going forward, then they need to zero out the current common stock holders and take their bond invesments and convert whatever is left over as equity. GM would do much better as a debt-less company. Otherwise they need to liquidate everything which will probably yield less than 25 cents on the dollar. What is more profitable? Liquidation or Restructuring. Only they know, but I would take my money and run.

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