GM Bondholders Agree to Revised Terms

Update: The Treasury Department along with a committee comprised of major GM bondholders reached an agreement that will give creditors a bigger stake in GM than was previously offered as long as they agree not to block the government’s plans for a quick bankruptcy at the beleaguered automaker.
The agreement, revealed in a SEC filing by GM early this morning, would give the bondholders 10% of the company and also give them the right to buy an additional 15% of the company’s stock at a lower price.

Although this new deal is unlikely to allow GM to avoid bankruptcy altogether, it may help clear away obstacles to the government’s plans to use a bankruptcy as a way to turn around the company.