There was talk in the Senate hearing about renegotiating debt. No more than 30
cents on the dollar was expected (while the market is prices the bonds at 20
cents). My impression was that the Senators were mostly referring to GM's debt.
It's not clear to me what Congress will force in the bill they pass. My guess is
that they will leave it to the new "auto czar."
In addition to a demand that UAW wages be reduced, there was also a call that the
UAW write down the Companies contributions to the VERBA Trust. The right wing
wants this Company liability treated the same as the bonds.
fmoseley-RojZmKP65O/[EMAIL PROTECTED] wrote:
It suddenly hit me this afternoon, while thinking about the GM
situation, that workers are being forced to accept wage cuts, but the
bondholders of GM debt are not being forced to accept any write-downs of
the debt? Is that correct? Have I missed something? Maybe some of you
have already pointed this out,
and I missed it?
If this is correct, it is totally outrageous, and we should be screaming
like hell. In normal Chapter 11 bankruptcy proceedings (as I understand
them), both the creditors and the workers are forced to accept cuts.
But in the case of GM, only the workers ? !
If this is correct, how can we get this into the public discussion asap?
Your comments and thoughts would be much appreciated.
Fred
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