Copied and Pasted by: Jeffrey Kam
March 23 (Bloomberg) -- Bondholder representatives said General Motors Corp.’s formula to swap debt for equity is likely to lead to “a bankruptcy that would have dire consequences,” and the advisers urged agreement on an alternative.
“We believe that, unless the framework we suggested is utilized, the restructuring currently contemplated will not achieve the required level of acceptance to succeed on an out- of-court basis,” the advisers wrote in a letter yesterday to Treasury Secretary Timothy Geithner and representatives of President Barack Obama’s auto task force.
The advisers said they are “disappointed” proposals they offered March 5, which the letter doesn’t describe, received no response from the task force or GM. The automaker is trying to persuade bondholders to swap debt valued at $27.5 billion for $9.2 billion and equity in the automaker
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March 23 (Bloomberg) -- Bondholder representatives said General Motors Corp.’s formula to swap debt for equity is likely to lead to “a bankruptcy that would have dire consequences,” and the advisers urged agreement on an alternative.
“We believe that, unless the framework we suggested is utilized, the restructuring currently contemplated will not achieve the required level of acceptance to succeed on an out- of-court basis,” the advisers wrote in a letter yesterday to Treasury Secretary Timothy Geithner and representatives of President Barack Obama’s auto task force.
The advisers said they are “disappointed” proposals they offered March 5, which the letter doesn’t describe, received no response from the task force or GM. The automaker is trying to persuade bondholders to swap debt valued at $27.5 billion for $9.2 billion and equity in the automaker
Click to read more
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