Main Street Bondholders

Financial Times: “Small GM bondholders to continue challenge”

admin — Mon, 29 Jun 2009 17:09:52 +0000

The small bondholders, undaunted, intend to continue their challenge. The unofficial committee has been gathering donations through a website to pay legal costs. Michael Richman of Patton Boggs is representing them. They will argue that the fast-track sale is unjustified and push for a traditional Chapter 11 reorganisation, which they believe will give them more balanced treatment with the unions. “We have enough to fund [the case] through our objections and we are working on funding it beyond that,” says Mark Modica, a manager at a Saturn dealership. “We’re still in a fight.”

Washington Post: “U.S. Judge Rejects GM Bondholder Group Plea”

admin — Wed, 24 Jun 2009 13:18:29 +0000

A federal bankruptcy judge on Tuesday denied a request by a group of dissident General Motors bondholders for special status in the case, which would have required the automaker to pay their legal expenses as they contest the company’s proposed restructuring.

Washington Post Live Twitter Feed of Official Committee Status Hearing

admin — Tue, 23 Jun 2009 18:56:34 +0000

The Ticker: GM Back in Bankruptcy Court Today

A group of bondholders opposing General Motors’ bankruptcy plan are in federal court today seeking “official” committee status. If successful, the group will hold more influence over the bankruptcy proceedings, potentially threatening the automaker’s government-backed plan to create a new, stronger GM in as little as 60 days. The official committee status also would mean the group — representing some 1,500 individual bondholders holding $400 million of the $-27 billion in unsecured loans to GM — will get their legal expenses covered by the automaker. Stay up to date on courtroom activity on the Live Twitter feed below. –Tomoeh Murakani Tse

Click here for the live Twitter feed

Automobile Magazine: “Group of Bondholders Objects to GM’s Bankruptcy Plan”

admin — Tue, 23 Jun 2009 15:45:19 +0000

“This private deal was struck in a back room, without any transparency, without any meaningful opportunity for the bondholders represented by the (unofficial committee) to participate in the process,” the group said in its court papers.

“The new GM could have been created fairly, in accordance with the law, transparently, and urgently, with a plan of reorganization,” it said. “It can still be done in that proper manner.”

Reuters: “Small group of GM bondholders object to sale”

admin — Mon, 22 Jun 2009 16:07:37 +0000

“This ‘private’ deal was struck in a back room, without any transparency, without any meaningful opportunity for the bondholders represented by the (unofficial committee) to participate in the process,” the group said in its objection filed in U.S. bankruptcy court in Manhattan.

The “unofficial committee” said that if the sale was approved, bondholders and unsecured creditors would face “disproportionate losses” on $27 billion in claims they have against the automaker.

Bloomberg: “GM’s Sale Opposed by 10 States, Union Retirees and Chrysler”

admin — Mon, 22 Jun 2009 16:04:55 +0000

Groups representing individual GM bondholders and tort claimants with product liability claims also filed objections yesterday. The individual bondholder group, represented by attorneys at Patton Boggs LLP, said it represents investors holding more than $400 million in GM debt. The group said in its objection that GM and the Treasury are improperly using a rushed sale rather than a proper Chapter 11 plan to restructure the automaker.

Associated Press: “Bondholders, unions object to GM asset sale”

admin — Mon, 22 Jun 2009 16:02:32 +0000

The Unofficial Committee of Family & Dissident GM Bondholders claim they are being treated unfairly compared with the automaker’s other stakeholders and deserve more than the 10 percent stake in the new company that they would receive if the sale goes through…..

“GM’s bondholders appear to be the most disfavored and discriminated class in the scheme,” the group wrote, pointing to the larger 17.5 percent stake the United Auto Workers union is slated to get under the sale.

Objection filed by Unofficial Committee of Family & Dissident Bondholders

admin — Fri, 19 Jun 2009 19:46:07 +0000

Click here to view our objection filed on Friday, June 19th.

Washington Times: “GM retirees tried to play it safe”

admin — Thu, 18 Jun 2009 20:24:51 +0000

Continuing coverage of the GM small bondholders by Washington Times

By John P. Krudy

Bobby Work, 87, bought GM bonds with her husband 30 years ago and dearly misses the $20,000 they once yielded each year. Teresa Durhone, 50, put the profit from the sale of her house into the bonds so she could quit work and care for her sick mother. Now she’ll need to find work again.

Washington Times: “GM workers trusted investment in product”

admin — Tue, 16 Jun 2009 14:04:28 +0000

Ted Dobski knew firsthand how solid General Motors Corp.’s cars were. He was a raw-materials buyer for the auto giant for three decades and believed in its future. So when he retired in 2001, he bought GM bonds to help fund his leisure years.