andruomail

Trading the GM Bankruptcy

The guy above has a good point -- if they sell all their assets in bankruptcy, how will the new GM have anything to work with? Is there a bankruptcy provision to cancel out debts without crippling a new company, and if so won't that cut down on the return on these old bonds? Or am I confused between the two scenarios with GM avoiding bankruptcy and issuing new shares, vs. bankruptcy and bond holders getting cash.