AFSCME 3357-HOF'S BLOG

Autonews: GM is Preparing "ALL EQUITY" Offer to Creditors

Autonews reported today (Saturday of all days) that General Motors is preparing a last ditch pre-bankruptcy offer to its creditors to effectively convert all of their debt into equity in the new (good) GM. This would apparently include the bond holders, the government, and at least to a certain degree, the underfunded pension and VEBA obligations.

Personally, I don't see this happening. Perhaps if Fritz softened them up with this classic Guess Who tune, they just might make it work.