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.
How can we join the Family and Dissident GM Bondholders
committee?
Posted by: Peter Kasper | June 19, 2009 at 06:08 PM