GM's New Escape Route: Partial Nationalization
Meanwhile, however, bondholders pose a major stumbling block to the restructuring. Under the proposed offering which GM filed with the Securities and Exchange Commission, investors holding $27.2 billion of GM bonds would swap those bonds for 10 percent of the equity shares of the restructured company. The United Auto Workers would get up to 39 percent of the company in return for half of the $20 billion GM owes to a health fund for retired workers. Current shareholders would get 1 percent of the new shares.
Proposal Recap:
- 50% Federal Government Owned
- 39% Worker Owned
- 10% Investor Ownership
- 1% Current shareholder stake
Shit’s crazy!
-
iambal liked this
-
wooliebear liked this
-
billda reblogged this from enteekaygee and added:
Bolded is the only part I agree with - finally this looks like bankruptcy. Here’s the ridiculous part though. Notice...
-
sexartandpolitics liked this
-
enteekaygee posted this
