Friday, May 29, 2009
GM Makes Tentative Deal With Bondholders
Government Motors reported on Thursday that they had reached a tentative deal with some Bondholders which represents about 20%
of its debt.
Under the proposed deal, the Bondholders would be offered 10% in
a newly reorganized GM and would also receive warrants, entitling them purchase another 15% equity in a reorganized company.
The taxpayers will own 72.5% of the reorganized nationalized automaker and the UAW would own 17.5% which GM reported in securities filings.
Government Motors has taken nearly $20 Billion Dollars of taxpayers money, much of it, will never never be repaid. GM is expected to file for Bankruptcy Protection next week.
During Bankruptcy, analysts say that the taxpayers will spend
at least another $50 Billion Dollars to get the ailing auto company through bankruptcy, the true costs are unknown and may even be much higher?
Is this really a good expenditure of taxpayers money? What would have happened had Democrat-Socialists been in charge of Congress and the Presidency, during the start of the industrial revolution, would they have bailed out Buggy Companies?
More here from Yahoo Finance