casey00001

Trading the GM Bankruptcy

A very concise and well done analysis. Makes you wonder if Obama offered the bondholders 30% which is a baseball heading into fair territory rather than foul (10%); If bankruptcy could be avoided? Still the unexplained math is the 39% to UAW. Chalk one up for Chicago Politics. Following your analysis what would the UAW get in your scenario? Low side and high side.

Playing the Auto Bailout With Yields as High as 45%

No, these payments do not qualify as dividends. They are interest payments to the shareholder. As such they are not subject to the 15% capital gains rule. According to the perspectus, the dividend can not be suspended. (GMS)


On Dec 10 05:37 PM joeevan wrote:

> The rescue plan notes: "As long as the loans are outstanding, the
> auto companies would be barred from paying dividends to their shareholders
> or bonuses to their top executives."
>
> Does this stipulation apply to the convertibles and related certificates
> or just dividends for common shares?
>
> Thank you.