Archives

http://www.thetruthaboutcars.com/sec-filing-reveals-gm-stockholder-wipeou/
http://uk.reuters.com/article/topNews/idUKTRE5451B620090506

General Motors has filed papers with the Securities and Exchange Commission detailing plans for financing the new, “good” GM. If/when realized, the scheme will wipe out GM’s current stock holders. The plan would:

* Increase the number of authorized shares to 62 billion
* Reduce the par value to one cent
* Effect a 100:1 reverse split for the existing shareholders (that’s one cent on a dollar)

It’s the latter that says sayonara to anyone who owns shares in the current “bad” GM, as Reuters reports.

Hi Shrek:

___The shareholders have already lost their value given the stock price today. Anyone still holding on is whistling past the graveyard unfortunately. The next hammer to strike the anvil will be the bondholders and creditors. They are next in line with the employees and retirees taking the final blow if GM goes down for the count. We will end up paying a portion of the retiree benefits to the tune of hundreds of Billions of $'s through the US backed - PBG Corp and they are almost bankrupt now :(

___Good Luck

___Wayne