Dow Jones story includes interviews with GM small bondholder Jim Graves…
GM Bondholders Lobby US Lawmakers To Oppose Treasury-Backed Deal
Jim Graves, a 58-year-old software developer from Celebration, Fla., said that under those terms, he and his mother stand to lose most of the $100,000 in GM debt they have been counting on for retirement. “It’s stunningly unfair,” Graves said. He pointed out that compared with the unsecured bondholders, other stakeholders, including the U.S. government, would receive bigger equity stakes in exchange for smaller amounts of debt as part of the GM restructuring.
Graves said he and other investors met with staffers of Sen. Tom Coburn, R- Ok., and Sen. Joseph Lieberman, I-Conn., who were “sympathetic.” There’s no consensus among investors about what would constitute a fair deal, Graves said, but he emphasized that the main goal is that they are adequately represented in the negotiations.
“We have not been able to plead our case with anyone and we’ve basically had 30 days to respond to this horrific offer,” he said.
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