• 29 May 2009 at 3:38 PM

With Sugar On Top?

gm-ten.jpgPleading, urging, begging, whatever. Call it what you will, this one isn’t going to drift by as “easily” as Chrysler. But then, the Chicago machine is just getting warmed up, isn’t it? Either way, we continue to be amused by the (1 – 0.65) reverse spin on the debt holder (dis)approval numbers.

Advisers to General Motors Corp bondholders representing $27 billion in the automaker’s debt urged investors on Friday to support a debt swap negotiated over the past week with the Obama administration.
Bondholders have until Saturday to register their support for the terms of a deal that would give them up to 25 percent of a reorganized GM. That offer is contingent on the U.S. Treasury determining that enough investors have signed on in support.
Investors representing at least 35 percent of GM’s bonds are expected to support the sweetened offer from the U.S. Treasury, which will be the automaker’s largest shareholder and creditor.
In a conference call open to GM bondholders, advisers to an ad hoc committee representing institutional investors urged other bondholders to offer their support for the deal.

But we wonder if the real story here isn’t this:

For the government to be repaid in full, GM would have to have an enterprise value of $69 billion based on its expected 72.5 percent stake in the company, Siegert said.

Really, the jobs we are “saving” are getting obscenely expensive. What happened to a “bridge loan” and the rough backhand pimp-slap that Treasury and company were supposed to deliver to a GM that was not viable by the deadline?

18 comments (hidden to protect delicate sensibilities)
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Comments (18)

  1. Posted by Lowly Assistant | May 29, 2009 at 3:46 PM

    EP,
    I’m really not that picky, but can’t you choose another photo for the GM entries? It’s truly a tease, because we all yearn for Muffie due to the model about to get hit by the car.
    How about this? A rape van?
    http://classiccarsales.ie/files/cars/images/big/GMC_GMC_Chevy_G20_A_team_Van_41cc81915bc441c052d1fb79418a271e.jpg

  2. Posted by guest | May 29, 2009 at 3:55 PM

    Bess, you look so fetching in that champagne gown…

  3. Posted by guest | May 29, 2009 at 3:55 PM

    Muffie just looks better and better every day!

  4. Posted by guest | May 29, 2009 at 4:07 PM

    GM should have had the model present the plan to the bondholders.
    I didn’t even notice the car

  5. Posted by guest | May 29, 2009 at 4:09 PM

    I wonder if this means that FF Phil LeBeau will finally get off GM’s dick.

  6. Posted by guest | May 29, 2009 at 4:10 PM

    Goodness, it just occurred to me…what’s gonna happen to the “car show model” profession?

  7. Posted by HAM05 | May 29, 2009 at 4:11 PM

    can someone with more math skillz than me please figure out how much cash every individual involved with gm would make if the govt just cut them a personal check rather than this money-burning party?

  8. Posted by guest | May 29, 2009 at 4:14 PM

    @6 Obama will take care of them
    Then Bill Clinton will “take care of them”
    Then Obama will have to provide them with a second check to cover pain and suffering.
    -Really, I do look forward to 70% of my income going to taxes

  9. Posted by guest | May 29, 2009 at 4:18 PM

    @6, they will probably become business models over at Bluth

  10. Posted by EvilBuzzard | May 29, 2009 at 4:33 PM

    At their current rates, nothing will make GM viable by any deadline. It probably beats driving a Trabant, but not because of any difference in business models.

  11. Posted by guest | May 29, 2009 at 4:51 PM

    Stacy Keibler.
    The answer to the hitherto unasked question.

  12. Posted by guest | May 29, 2009 at 5:10 PM

    @11 Good eye. Didn’t know she did non-WWE promo work.

  13. Posted by Anal_yst | May 29, 2009 at 5:10 PM

    @HAM
    I argued prolly around a year ago that GM would be better-off paying all of its employees to stay home from work, while powering-down all offices/plants/etc. At the least, they would have survived longer than they have, and with far less inventory on-hand.

  14. Posted by guest | May 29, 2009 at 8:25 PM

    Q: How do you know when The Messiah is lying to you?
    A: When his lips are moving?

  15. Posted by guest | May 29, 2009 at 9:31 PM

    Emmanuel, “Barak remember all those dinners in Hyde Park where we talked about everything we’d do?”
    Obama, “I sure do, have to admit I never thought it would happen.”
    Emmanuel, “Its like a get of jail free card, we can reshape America into a greener, less materialistic more socially responsible country… and if it doesn’t work we can blame it on Bush’s economic collapse.”
    Obama smiles.
    Cut to next scene.

  16. Posted by guest | May 30, 2009 at 8:38 PM

    i dont know about that car… but the chick is hot.

  17. Posted by guest | June 1, 2009 at 3:35 AM

    my bloomie says there are 235,000 employees…
    If I divide $60 billion by 235k I come up with a one time check for each manager, parts stamper, and floor cleaner for $255,319.15…
    I think most of them would have been happier with that… and if they had made the payment taxable the US’d have earned back another 40%…
    It’s like the idiots I talk to who wouldn’t bet $1000 with 50/50 odds but still put $10 into the lottery every single week…

  18. Posted by guest | June 1, 2009 at 10:19 AM

    @17, BUT WHAT ABOUT THE SUPPLIERS?!?!?! OMG!!