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

Thursday, July 2, 2009

GM Recovery Plan Rests With Judge

"We support the creation of a new GM. We think it's a fine idea," Michael Richman, a lawyer for the group, said, acknowledging that without government loans, GM would collapse. "That doesn't earn the government an exemption from the law."

Mr. Richman said U.S. control over GM made the company's bankruptcy "a historic first attempt at a Chapter 11 nationalization."

See the entire article:

GM's bondholders: Let's 'negotiate fairly'

The representatives explained to the court that they shouldn't be left behind in GM's bankruptcy process, arguing that such a move is not legal.

Michael Richman, an attorney from the firm Patton Boggs representing a group of dissident bondholders addressed the judge about "the absence of real choice in the dominance of the government," referring to the U.S. Treasury's role in pushing the bankruptcy process forward.

He said that the Treasury, in imposing it's July 10 "drop dead deadline" was using a "my way or the highway" attitude in refusing to consider alternate means of restructuring.

Dissenting bondholders argue against GM asset sale

"Calling GM's sale the first attempt at a "Chapter 11 nationalization," Michael Richman, a Patton Boggs bankruptcy attorney representing the group of dissenting GM bondholders, said the U.S. government had been "overbearing" in its rescue of the automaker and was circumventing the law."

See the entire story here:

Wednesday, July 1, 2009

U.S. government won't fund GM after July 10, official says

"We have no intention to further fund this company if the sale order is not entered by July 10," Harry Wilson, one of the Treasury Department officials overseeing GM's restructuring, said while being cross-examined by an attorney for a group of GM bondholders opposing the sale. It was the second consecutive day of hearings to determine GM's fate.

GM bankruptcy wrangling in 2nd day

Mark Salzberg, an attorney with Washington-based Patton Boggs, representing unsecured bondholders of GM, asked Wilson a series of questions about the reasoning behind leaving bondholders out of the bankruptcy process.

Wilson said that one of the "strategic benefits" of a 363 sale, in which the preferred assets of the old GM are transferred to the new GM, is that "consent of bondholders was not required."
(The truth comes out that the auto task force wanted to deprive the bondholders their rights under the Chapter 11 bankruptcy)
See the entire article at:

Tuesday, June 30, 2009

The GM Bankruptcy and the Supreme Court

Great Article written by an attorney and a GM Bondholder.....
"The court might suggest that the Obama Administration return to Congress and ask for expedited hearings on legislation that allows the federal government to make loans to GM. Armed with a court order and a bully pulpit, President Obama should have some quick success. The loans would be conditioned on GM's filing for normal Chapter 11 bankruptcy plan process with an accelerated calendar and with the procedural protections unavailable under the section 363 fast track bankruptcy provisions used in the GM and Chrysler cases. The new loan assistance to GM would be tied to a requirement that the UAW adjust its benefits and wages to be more in line with that of GM's historically profitable counterparts. All of the federal government's senior claims would be paid before the bondholders, UAW, and other junior creditors would be eligible to collect significant recoveries on their claims."

See the entire article at:

Monday, June 29, 2009

June 30 Hearing- List of Objectors is 108 pages

Incredible! Look at the list of objectors that are have filed complaints against the GM/Government Sale of assets and screwing of Bondholders. The list is 108 pages long!


You know what they say for every ten folks that complaint there are 10 that say nothing! Should be interesting. To see if your name is on the objections list, bring up the document, then search by name. I'm there! My 12 page objection was duly given a document number.

Michael Richman of Patton Boggs Audio, June 26

Excellent Audio of Michael Richman of Patton and Boggs who is the legal representation of the "Family and Dissident GM Bondholders" gives a good summary of the Bondholder Issues and an update on what is happening. It's a must hear audio.
Section 1-Click to hear
Section 2-Click to hear
Section 2 talks about what to expect. Very good discussion about how the GM plan is legally unsupportable.