Dissident GM bondholder committee denied official status

Bloomberg reports today, that U.S. Bankruptcy Judge Robert Gerber denied a bid to form an official bankruptcy committee by a group of dissident individual GM bondholders, at a hearing yesterday in the GM bankruptcy proceedings in Manhattan. .  "The individual bondholder group has three members with about $2.3 million of GM's $27 billion in bonds, though it represents a network of similarly situated investors holding about $500 million in GM debt, said their lawyer Michael Richman, of Washington-based Patton Boggs LLP."  Bloomberg also notes that "GM has said institutional bondholders, holding about 54 percent of the carmaker's bond debt, agreed May 31 to support the asset plan and to swap their debt for a 10 percent equity stake in the new company, plus warrants."   "There's been no showing this creditors' committee can't function," Gerber said, noting it was...(Read Full Post)