What happened to GM bondholders?

What happened to GM bondholders?

DETROIT — General Motors gm has struck a deal with 20% of its bondholders to swap shares in a newly formed automaker once the company emerges from bankruptcy, the company said in a filing with the Securities and Exchange Commission on Thursday.

Was the bailout the same as GM’s Chapter 11 bankruptcy?

The filing reported US$82.29 billion in assets and US$172.81 billion in debt. After the Chapter 11 filing, effective Monday, June 8, 2009, GM was removed from the Dow Jones Industrial Average and replaced by Cisco Systems….Background.

Old GM (before July 10, 2009) New GM (as of July 10, 2009)
5,900 US Dealerships 5,000

Who bailed out GM in 2008?

On this day in 2008, a week after Senate Republicans killed a Democratic-sponsored bailout bill, asserting it failed to impose sufficient wage cuts on autoworkers, President George W. Bush announced a $17.4 billion bailout to General Motors and Chrysler, of which $13.4 billion would be extended immediately.

What happened to GM stockholders in 2009?

The old GM stock stopped trading on the New York Stock Exchange on June 1, 2009, the day that GM filed for bankruptcy. Each share of GM stock became a share in Motors Liquidation. While it was widely reported that the shares were worthless, those shares still traded, then and now, over the counter.

Did General Motors file bankruptcy?

General Motors filed for bankruptcy early Monday, marking the end of an era for GM, as the troubled automaker now represents the largest bankruptcy in history. Even the $19.4 billion in federal aid was not enough to keep the automaker out of bankruptcy court.

Who bailed out GM?

Bush announced that he had approved the bailout plan, which would give loans of $17.4 billion to U.S. automakers GM and Chrysler, stating that under present economic conditions, “allowing the U.S. auto industry to collapse is not a responsible course of action.” Bush provided $13.4 billion immediately, with another $4 …

How much does GM owe the government 2020?

In total, GM received $52 billion from the U.S. government, but only $6.7 billion of this amount was considered a loan. The company already paid back $2 billion, so this $4.7 billion is the last payment. This doesn’t mean that “Government Motors” is no more.

What did the bondholders of GM get from the bankruptcy?

Unfortunately, the common shares of stock had no value after the GM bankruptcy reorganization was approved by the courts, However, the GM bondholders did receive some bankruptcy proceeds from Motors Liquidation Company in the form of four different securities on four distribution dates.

How much money does General Motors owe to bondholders?

GM owes a total of $33 billion to bondholders; $6 billion is secured and $27 billion is unsecured. Secured bondholders were willing to accept lower interest payments than unsecured bondholders to be at the top of the list of creditors to be paid back if the firm entered bankruptcy.

Who was the CEO of General Motors during the bailout?

The administration forced out the CEO of General Motors, Rick Wagoner, and gave Chrysler 30 days to finalize a merger with the Italian automaker Fiat. In exchange, the companies received another (and even larger) round of government loans. In the end, almost $77 billion in TARP funds was diverted to GM and Chrysler.

When did General Motors emerge from its bankruptcy?

The automakers’ house-cleaning didn’t take long; within two months of filing, each company had emerged from its bankruptcy. By the summer of 2009, the new General Motors was a somewhat smaller and leaner company, having shed about a third of its American work force.

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