Logan Flatt

GM: Expect More Short Covering

To clarify, Tom meant to say old GM BONDHOLDERS (i.e., NOT shareholders) will initially own just 10% of the company. Old GM shareholders should be wiped out upon the bankruptcy court judge's decree.


On Jun 10 10:13 AM TomWilkinsonatGM wrote:

> I won't comment on the specific activites you mention, but just a
> reminder for your general readers that current GM stock will become
> stock in the "old GM" should the 363 sale occur as expected, and
> old GM will be wound down in a chapter 11 process. The "new GM"
> that will emerge will be owned largely by the U.S. government, Canadian
> governments, and UAW VEBA. Old GM will initially own just 10% of
> the new company.
>
> All of this is detailed in the court filings at gmcourtdocs.com,
> and in extensive SEC filings available on our investor site.