GM Bondholders Accept Sweetened Offer!

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The government has made a new offer to the GM (GM) bondholders, and an unofficial representative committee likes the offer.

The new plan would give unsecured bondholders 10% of the company as well as warrants to take advantage of any (possible) upside in the company. It would also involve the government injection money into GM as equity, rather than senior debt.

According to Phil Lebeau on CNBC, the odds are still highly likely that the company will go into bankruptcy, but with Chrysler-like support from a lot of the bondholders, the odds of a relatively smooth process are increased.

It’s still not accepted-accepted. The bondholders committee represents the big boys, but they still need to sell it to all those pesky retail retirees, who have until this weekend to accept the offer.

One feature of this plan is that it doesn’t wipe out current stockholders entirely. GM shares, which had been up 13% are now halted. GM Shares are basically flat on the news, trading just over $1.

Update: Here’s the company’s full 8-K filing.

Update 2: Via CNBC, the bondholders still say that they’re being treated as subordiante to the union, but that they’re willing, nonetheless, to go on with the new offer. GM shares are up over 13% this morning, but it’s still not clear what, if any, value will be left over for shareholders.

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