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  • What Are the 'Old GM' Bonds Worth? [View article]
    Escrow status because only the initial distribution has been made. That implies that there is more to come.

    www.wilmingtontrust.co...

    I don't know if Wilmington Trust will provide % allocations for each of the 3 securities to enable you to allocate the cost basis. You know your cost basis for the original bonds, so you can determine it for yourself.
    May 1 09:26 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    There is more to come, that is just the initial distribution per the Wilmington Trust website.
    Apr 25 10:41 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    I don't know how many shares/warrants you will get. There is no cash in the distribution. Your bonds were 30-30.7 on the close Friday.

    You will get about $59,000 worth in the distribution based on today's price for GM.
    Mar 19 09:00 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    All the outstanding notes and debentures will get the same % of their par value in the settlement with the exception of small additional amounts for accrued interest unpaid on the June 1 bankruptcy filing.
    There is additional debt outstanding for which Wilmington is not the trustee and this debt is an equal participant in the settlement.
    Feb 6 08:10 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    There is no cashless exercise for the warrants. Probably best to just sell them when you get them. I don't know how many shares or warrants you will get for your 1800 shares of BGM.
    My best guess for the distributions is May or June.
    Jan 12 08:46 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    You can exercise the warrant at any time and for $10 you will get one share of GM. There is no dividend on the warrants. The warrants expire in July 2016. You will also get warrants that exercise at $18.33 and expire in 2019. After the warrants expire, they are worthless.

    I expect that the warrants will be listed or trade somewhere. You will most likely sell the warrants shortly after you receive them.
    That is what I would do. Many brokers will charge you a fee to exercise the warrants.

    Your gain or loss would be based on your original cost basis in the GM bonds. Your cost would then be allocated to the GM shares and warrants you receive.

    Exercising the warrants would not be a taxable event. Selling the GM shares after exercise or just selling the warrants would be a taxable event.

    I am not an accountant, so check all this with your tax advisor...
    Jan 10 08:08 AM | 1 Like Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    I believe that the amount of GM stock and warrants for each bond will also include the amount of accrued, but unpaid, interest up to the Jun 1, 2009 filing of Chapter 11.

    That could be as many as 165 days of interest or as little as 7 days.

    It seems that the bonds that pay interest on Dec 15 and Jun 15 would benefit the most from this. and the bonds due 5/23/48 would benefit the least.
    Bond bids and offers do not always reflect this extra payment as other supply/demand imbalances exist.
    Jan 8 01:43 PM | 1 Like Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    The bondholders will get more with the structured bankrupcty than they would have with a standard bankruptcy through the courts.

    The US and Canada put $59.4 billion into GM. When GM went public @ 33, the market cap was $49.5 billion. Without the US and Canada cash infusion, GM would have been virtually worthless and the bonds, currently trading at 34-35 would have been worth less than 10 in a GM liquidation.

    No entity other than those governments would have loaned GM money.

    See page 55 of the GM offering prospectus:
    www.sec.gov/Archives/e...
    Jan 7 09:18 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    That is up to you. The GPM will rise and fall with the value of the new GM stock. It is most likely worth a bit more than the current bid. See the previous comments.
    Jan 6 10:11 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    If GM stock stays at this level (37.50) or higher, it probably would be best to hold the bonds and receive the distribution of GM shares and warrants.

    The price of the GM stock is the primary factor in determining the price of the bonds.

    You will get with GM stock and 2 different warrants. Since you are at Ameritrade, it won't cost you much to sell them when you choose to do so.
    Jan 5 08:16 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    Based on the $1000 par bonds bid around 33.50 this morning, the $25 par bonds (like BGM) should be worth around $8.35.

    The $7.95 bid isn't bad, but reflects the fact that most activity in these $25 par bonds is initiated by sellers, not buyers.

    Ameritrade has to hit some other dealers bid to execute your sale.
    A lot of human handling for one order.
    Jan 4 09:56 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    All the old GM bonds are included in the swap. The trustee (probably Wilmington Trust) takes care of everything. Check their website in a previous comment to this article.
    Dec 26 08:39 PM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    There will not be any distribution of GM shares and warrants to "old GM" bondholders until April 30, 2011 at the earliest.

    Best guess is now June 30, 2011.

    www.wilmingtontrust.co...
    Dec 22 10:41 AM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    Still up in the air. The total claims against the shares and warrants distributed to Motors Liq Co are not yet know.
    Once that is known by Wilmington Trust, that trustee will announce the distribution amount of shares and warrants per $1000 and the date the distribution will take place.
    Sometime in the next 4 months is my guess.
    That level at which the debt is trading reflects the best information currently available.
    Nov 29 04:13 PM | Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    $50,000 of GM debt will get shares and warrants worth about $16000 to $17,000 based on current GM share price.
    Nov 29 02:47 PM | Likes Like |Link to Comment
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