“I wish the White House would take small bondholders into consideration the way they are taking the United Auto Workers into consideration,” Jim Graves, a former GM employee, said at a news conference.

“Small bondholders want to be part of the negotiating process,” said Joan Pryor, a former antiques dealer from Connecticut.

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By Jim Puzzanghera

Graves predicted that few bondholders would accept GM’s current offer and said that he and other small bondholders think they would get a better deal from a bankruptcy judge. He hopes it won’t come to that but says it will be the fault of GM and the government if it does.

“If they continue down this path, then they’re the ones who are forcing this into bankruptcy,” he said.

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What if GM Bondholders Got Cars?

Graves says his mother suggested his purchase of the bonds, and he liked the relatively high yield. Now, he says, “No one has explained to me the rationale where the government will forgive ($15.4 billion) and take 50% of the stock, while the bondholders will forgive $27 billion and take 10%.”

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Villagers speak out against GM stock deal

By David R. Corder

“It’s the Obama administration and big unions that are saying, ‘This is what we should do,’” Martin said. “We think these small investors should have a voice. We’re out there pushing hard before this government-imposed deadline. We’re saying, ‘Let’s give these small bondholders a little bit of breathing room.’”

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