April 21 (Bloomberg) -- President Barack Obama’s automotive task force has contacted the General Motors Corp. bondholder group to set up their first meeting in more than six weeks to discuss restructuring the largest U.S. automaker, said a person with knowledge of the dialogue.
The bondholders have been excluded from talks with the task force since the two groups met on March 5, said the person, who declined to be identified because the discussions are private. GM and the U.S. Treasury have been meeting this month to craft a revised plan to save the company. The date for the meeting with bondholders hasn’t been set, the person said.
Something to consider here: The same managers that have large positions in GM bonds (perhaps ad-hoc committee members) have expressed the desire to participate in PPIP. Knowing the governments desire to see the bondholders foot most of the GM bill, will there be strong objections to the bloodletting if it might sour the government to their PPIP application?