GM Bondholders' Plan Would Put Them In Control

Law360, New York (April 30, 2009, 12:00 AM EDT) -- General Motors Corp.'s bondholders proposed a plan Thursday that would give them, rather than the U.S. government, a controlling stake in the embattled automaker as it looks to avoid bankruptcy.

Under the proposal, the bondholders would give up $27 billion of notes in return for a 58 percent equity stake in the new GM.

Meanwhile, a union health care trust called the Voluntary Employee Benefits Association, which owes about $20 billion in benefits to retirees, would be allocated a 41 percent stake, and current shareholders would...
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