Looks like the fight is over folks......

Saturday, June 27, 2009

F and D Committee to Depose GM CEO Henderson

On Friday June 26, the F&D committee filed their witness list for depositions, including GM CEO Frederick Henderson. See the original document here:
Also on the list is member of the Task force. Finally there will have to answer the tough questions from the F&D Committee attorney's at Patton and Boggs.

Defiant small GM bondholders vow to carry on the fight

Defiant small GM bondholders vow to carry on the fight
By Nicole Bullock
Published: June 27 2009 03:00 Last updated: June 27 2009 03:00

This weekend, Oliver Addison Parker will board a plane from Fort Lauderdale to New York. Mr Parker, a trial lawyer and General Motors bondholder, is en route to hearings on the company's restructuring to argue his case himself in federal bankruptcy court.
An unofficial committee of family and dissident bondholders lost a bid this week to gain official status as a separate committee, which would have meant the estate paid the legal fees. The group intends to contest the sale separately.

The issue highlights the difficulty individual bondholders face when competing against larger, better connected groups. Top lawyers for GM and the unsecured creditors' committee charge rates of more than $900 an hour.

The high fees and the difficulty of mobilising opposition mean that individuals, including the dealers, have gained publicity and sympathy on Capitol Hill but not so much in bankruptcy court.
A survey by the unofficial committee of family and dissident bondholders of its group showed 86 per cent of respondents bought their bonds between 80 and 100 cents on the dollar. Many are retirees who stand to lose much of their savings.

The small bondholders, undaunted, intend to continue their challenge. The unofficial committee has been gathering donations through a website to pay legal costs. Michael Richman of Patton Boggs is representing them. They will argue that the fast-track sale is unjustified and push for a traditional Chapter 11 reorganisation, which they believe will give them more balanced treatment with the unions.

"We have enough to fund [the case] through our objections and we are working on funding it beyond that," says Mark Modica, a manager at a Saturn dealership. "We're still in a fight."

Thursday, June 25, 2009

GM Update: Dissident Bondholders Not Backing Down

June 25, 2009 6:05 PM
GM Update: Dissident Bondholders Not Backing Down
"The bondholders complain that the plan to sell most of GM's assets out of bankruptcy in a Section 363 sale will benefit some unsecured creditors and hurt others, according to court records. The retiree trust for the United Auto Workers, for instance, will gain a large minority stake in the new GM, while the individual bondholders may have to settle for pennies on the dollar, attorneys have said."

"Richman will get his chance to question the sales plan starting Tuesday (June 30), when GM and its legal team at Weil, Gotshal & Manges call a number of high-powered executives, including former GM chief executive Fritz Henderson, to the witness stand to testify in favor of the proposed sales plan. Richman say he plans to question them aggressively about the plan."
See the entire article at:

Tuesday, June 23, 2009

Judge denies GM bondholder group committee request

In bankruptcy cases, official committees can have their fees paid for by the bankrupt company rather than having to come up with the money themselves.

The group's lawyer, Michael Richman, of the Patton Boggs law firm, argued that an official committee was necessary because his clients -- many of them retirees and individual families -- had limited means and that the bondholders were a large disparate group.

"Some people think we are insane to be standing in the way of this process, but this is about adequate representation," Richman told the court.

Richman told reporters after the hearing it was "likely" his clients would continue to object to GM's fast track sale, but he was unsure what they would be able to do given their spending limits. Richman said he was planning to meet the official committee of unsecured creditors to see if they would adopt any of the objections his group has raised.


See Also: Judge Shoots Down Plea for Extra GM Bondholders Committee

After the hearing, Richman said he will likely press on with the bondholders' objection to the sales plan, but that he's not sure how the bondholders will pay for continued high quality legal representation. "It's a challenge of resources," he says.


Monday, June 22, 2009

Late Objection Filing Notification

If you are an individual GM bondholder, sometimes people mistakenly think some issues are "preferred stock", but they are debt instruments or "baby bonds" as indicated on the GM investor website. You most likely received your notification of the bankruptcy filing and proposed sale of the good assets via a mailed notification. I have bonds in four brokerage accounts and ALL four notifications came to me on June 19, 2:00 PM PST. The objection deadline as indicated on the filing, after which NO OBJECTIONS WILL BE CONSIDERED, was June 19, 5:00 PM EST. They must be on file with the bankruptcy court by this deadline. Obviously, it was impossible to file an objection in a timely manner. GM has at every turn trying to circumvent the legal rights of individual creditors, this is no exception. I have been in contact with others who also received their filing notifications too late to meet the deadline.

What can you do--write to:

The Honorable Robert E. Gerber
United States Bankruptcy CourtSouthern District of New York
One Bowling GreenNew York, NY 10004-1408
Case No. 09-50026 (REG)

Phone: 212-668-2870
Fax: 212-668-3357

I just spoke with the bankruptcy court, you can still send your objections; include a cover letter indicating your notification was late.