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GM bond holders don't have some secret desire to go to bankruptcy court, they know they are going to lose more in bankruptcy court than they would if they ended up owning their fair share of a new GM outside of bankruptcy court. The problem is they are not being offered their fair share - the government and UAW are offering 90% of the company to themselves, and GM bond holders are expected to take 10%, when bond holders own MORE of GM's debt than the UAW and the government COMBINED. So ... GM bond holders are going to let the company slip into bankruptcy court, because that's their last chance to get a fair deal on what's left of the companies assets. Plain and simple.
GM bond holders are willing to take that risk for one simple reason, separation of powers - if the executive branch and the legislature is out to screw you, move on to the judiciary and see if you can get a fair deal.
The government is the one forcing GM into bankruptcy court by leaving bond holders no other choice.
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What are you pretending not to know ?
Last edited by wind_magic; 05-17-2009 at 03:13 PM.
Reason: sp
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