« California and the Argentine Option | Main | What Did the Indiana Funds Want? »

GM's Bondholders

posted by Stephen Lubben

The "Unofficial Committee of Family & Dissident GM Bondholders" -- a group comprised of 3 individuals who hold 0.0085% of the outstanding GM bonds -- has moved to become an official committee.  I have never seen a case where a single security has been subdivided into multiple committees (the bonds are already represented on the general committee).

Among the issues the F&D folks raise is the possibility that some of the bondholders who agreed to support the revised deal with GM might have CDS protection (sometimes referred to as a "basis trade"). This is an issue I discussed in my article on CDS and chapter 11 -- the possibility that hedged creditors might support different plans than "normal" creditors, given their downside protection -- and it will be interesting to see if at the sale hearing the bankruptcy court wants to know more about the bondholders who are supporting the sale.

Comments

How can we join the Family and Dissident GM Bondholders
committee?

The comments to this entry are closed.

Contributors

Current Guests

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF