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GM bondholders seek to take majority stake

Thursday, April 30, 2009

GM bondholders seek to take majority stake

Associated Press

New York — A committee of General Motors Corp.’s bondholders has offered to take a 58-percent stake in the restructured automaker in exchange for their $27 billion in debt.

The bondholders say the U.S. government wouldn’t take a stake in the automaker under their plan, while a union-run health care trust would own a 41-percent stake and current stockholders would get 1 percent.

The bondholders say their offer is more fair than GM’s. Earlier this week, Chief Executive Fritz Henderson offered GM’s bondholders 225 shares of stock for every $1,000 in bonds. The U.S. government would also get a majority stake under GM’s plan.

Analysts say that plan leaves the bondholders with a tiny stake in the final company.

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