GM and its bondholders are at odds over $27 billion in claims ahead of a June 1 deadline. The bond group called GM’s April 27 offer to swap their claims for a 10 percent equity stake “neither reasonable nor adequate” and asked to be treated more equitably with labor unions. The counter-proposal by bondholders hasn’t been adopted.
GM’s offer is “grossly unfair to the point of abusive,” Glenn Reynolds, chief executive officer of CreditSights Inc. in New York, wrote in a report this week. “Politics remains an overriding factor in the equation and has been decidedly unfriendly to the interest of bondholders in a contest with the disproportionately outsized power of organized labor and other Washington-heavy constituencies and interest groups.”
CreditSights recommends bondholders reject GM’s debt exchange and expects the offer to fail.
No, he’s no relation, but I see him quoted now and then. Seems on-target here, anyway. . . .