Ha! that's because M class was build in ALABAMA http://www.popularmechanics.com/automotive/reader_rides/1271026.html
Soon <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/0zIJCpUqeb4&hl=en&fs=1&start=166"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/0zIJCpUqeb4&hl=en&fs=1&start=166" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object> Bond Holders: Do you hear that General Motors?... That is the sound of inevitability... It is the sound of your death... Goodbye, General Motors... GM: My name is Government Motors!
Word is that the gov't auto board wanted GM to enter bankruptcy, but didn't want the blame. So, they structure the deal so that no bondholder in their right mind would convert their bonds, and thus, voila, GM enters bankruptcy and it's not OBAMA'S fault! It's those evil speculators fault! Another Obama twofer!
This is a tough one. Pay out or reboot yourself - folding is probably not an option and sooner or later someone will pop in to save the day.
No idea. With a position like this I size for a "forever" hold and don't bother looking at it very often. It will be what it will be...
News stories today pushing the line that it's those bad old bond daddies forcing GM into bankruptcy. Like I said above, make the bondholders an offer they must refuse, and then point the finger at them. They did it! Capitalism-bad! Unions-good!
From my reading of the 8K, the proposed bondholder deal would result in the existing common stock being worth zero. Not a small amount, but zero. Why is that? According to the 8k, http://biz.yahoo.com/e/090528/gm8-k.html common stock in the new GM would be as follows: 72.5% to the U.S. Treasury 2 17.5% to New VEBA 10% to Old GM My interpretation of "old GM" means bondholders. Therefore shareholders of "old GM" get zero of the stock in "new GM".
That's also my reading; however, things can change. We need to see the formal exchange offer. The 1% never made any sense anyway.