Posts Tagged “General Motors”

It was almost a jolly city council meeting last night. Even as the troopers were just beginning to trooped in you could see mostly smiles and friendly gestures. Tom Didier, always a happy guy, was the norm rather than the exception last night; the atmosphere during most of the rest of the year as was exemplified during the budget hearings when low grade snarls emanated from around the table. The meeting last night proceeded that way from front to back, only a couple of times did it seem that Liz Brown might go after someone at the table. (To be clear, Harper and Shoaff hardly ever are draw in to the snarling; Shoaff is a very gentile and collegial council member, Harper is highly conscious of the need for polite decorum and fully observes it.)

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General Motors (GM) said Wednesday that not enough bondholders agreed to an exchange offer, which expired at midnight Tuesday, to make the deal go through. GM’s board of directors will meet shortly to discuss the next step.

The automaker was attempting to persuade bondholders to trade in $27.2 billion in unsecured public debt notes in exchange for a 10% stake in the restructured automaker. GM needed 90% of bondholders to agree to the plan. On Wednesday, the automaker said the amount of notes turned in were “substantially less than the amount required by GM to satisfy the debt reduction requirement” set forth by the U.S. Treasury.

The bondholders do have incentive.

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