GM Bankruptcy

Here is the new layout of the GM "organizational change"

50% - Government
39% - UAW
10% - Bondholders
1% - Equity Holders

Bottom Line: This will affect business in a big way. Bondholders like Pimco's Gross are vital to businesses that need to raise capital. This deal is so unfair to the bondholder's that it will make institutional bondholders second guess every deal,. In my view, this will raise the cost of capital for many firms and make it more difficult to achieve.

Let's be real, this is ABSURD. The bondholders have $29 billion of the company and are only getting 10% of that ($2.9 billion), compared to the UAW, owns $20 billion and it getting 35% of that ($7 billion)! How fair is that people?