GM FEDERAL HELPERS ( aka AL CAPONE) GIVE CREDITORS A DEAL THEY CAN NOT REFUSE – JUST LIKE IN THE MOVIE!
GM took the FEDERAL help, to “help” it weather the time of losses by getting time to propose a financial restructuring. The FEDS have provided it with $27 BILLION so far of helpful loans to continue operations.
They were supposed to present a plan for its own recovery as a condition of receiving more aid.
Now the FEDS have taken a page out of the screenplay from the GODFATHER movie, and given the creditors of GM “a deal that they can not refuse.”
The Feds have proposed that holders of $27 billion in existing bonds, “exchange” them for a 10% equity stake in the new GM business, while the FEDERAL $27 billion in loans be exchanged for a 50% equity stake. Nice deal, if you have a gun to your head.
The UAW would “give up”claims” calculated at $20 billion, and would receive a 39% stake in the new business.
Finally, the existing stockholders, those people who actually provided all the capital over the last 80 years or so, would receive a 1% equity stake in the new business.
So this is the price for the government help-push out all the free market loans aside, push out the stockholders and elbow-in the government and the unions for a 89% ownership 
interest.
GM’s CFO said that if the various debt/bond holders do not accept this plan, he would ask a bankruptcy court to cram down this plan in any bankruptcy reorganization.
As a side note, many of the bonds and debt held is held by banks that are themselves part of the FED’s “helping hand” program, so please explain to us how exactly does this work?
The taxpayers give money to GM, then GM converts that money into worthless stock and the banks keep the money they got…say again?
Word of advice, don’t take the money when it’s offered, when someone says, ” I’m from the government, and I am here to help.”
