Main Street Bondholders » Modica

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 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.

The AM Law Daily: “Patton Boggs Lawyer Takes Turn For Dissident GM Bondholders”

admin — Tue, 16 Jun 2009 13:56:35 +0000

“Our position is they can spin the assets off–that’s done all the time in bankruptcy cases, there’s nothing remarkable about it–but determining who owns it and in what proportions should be done in accordance with the law,” he says. “The bankruptcy code has very specific protections and requirements for how you confirm a plan.”

The AM Law Daily: “GM Dissident Bondholders Pick Patton Boggs over White & Case”

admin — Tue, 16 Jun 2009 13:51:02 +0000

The bondholders did consider Lauria, according to Bloomberg, but picked Richman. “[W]e just thought [Richman] was a better fit for us,” said dissident bondholder Mark Modica, a 48-year-old employee at a Saturn dealership. “It was a difficult decision.”

Washington Times: “GM’s deal erased many average Americans’ savings”

admin — Mon, 15 Jun 2009 13:03:39 +0000

Washington Times profiles GM small bondholders…

By William Ehart

When people think of “bondholders,” they imagine tycoons. J.P. Morgan. Warren Buffett. Even the fictional Gordon Gekko of “Wall Street” fame.

In fact, tens of thousands of the bondholders of General Motors Corp. are not rich at all – and never were, even before the value of their bonds collapsed in the months leading up to the giant automaker’s bankruptcy filing.

Read the full story here

Click here for bondholder vignettes

Bloomberg: “GM Individual Bondholders Seek Own Bankruptcy Panel”

admin — Wed, 10 Jun 2009 12:38:44 +0000

Individual General Motors Corp. bondholders, who say their interests are different from institutional holders who support the automaker’s plan to sell its best assets to a new GM, want to be represented by their own official committee in the company’s bankruptcy case.

Philadelphia Inquirer: “PhillyDeals: Bondholder activists”

admin — Wed, 10 Jun 2009 12:36:25 +0000

“We’ll seek equal standing with the institutional bondholders,” said Mark Modica, business manager at Saturn of Doylestown and an activist in the small-savers’ movement, which claims 1,500 members who hold around 10 percent of the nearly $5 billion in GM baby bonds.

New American: “Details of GM Bankruptcy Emerge”

admin — Wed, 03 Jun 2009 15:17:13 +0000

Small bondholders also registered their criticism that the United Auto Workers union was receiving special concessions. “We have retirees on our side who are losing their retirement, but it seems like the retirement of the people in the union is being protected,” said Mark Modica, a business manager at a Doylestown, Pa., Saturn dealership. “I don’t think there’s a doubt there was preferential treatment.”

FOX Business Interview with GM Small Bondholder Mark Modica

admin — Tue, 02 Jun 2009 14:26:48 +0000

Los Angeles Times: “U.S. role at GM to be passive, Obama vows”

admin — Tue, 02 Jun 2009 14:01:42 +0000

Los Angeles Times story with a quote from GM small bondholder Mark Modica

But Mark Modica, 48, business manager at a Saturn dealership in Doylestown, Pa., said he thought the UAW did better than small bondholders like him. He rejected the final debt-for-equity offer made by GM in conjunction with the Obama administration last week because it did not offer an acceptable return on the $150,000 worth of GM bonds he bought two years ago.

“We have retirees on our side who are losing their retirement, but it seems like the retirement of the people in the union is being protected,” he said. “I don’t think there’s a doubt there was preferential treatment.”