GM Bankruptcy Sale Appeals are filed

Judge Gerber placed a four day stay on the GM Asset Sale order until Thursday to provide objectors time for an appeal. There was some wisdom in this decision since there were hundreds of objectors. It was a given that appeals would be filed immediately. The initial appeal was filed first thing Monday morning by "Individual Accident Litigants".

See the entire document:

http://gmcourtdocs.gardencitygroup.com/pdflib/2970_50026.pdf

I'll try to update as the appeals begin to be filed.

GM asset sale approved late Sunday

"Barring a successful last-ditch appeal by creditors to block the sale, the U.S. Treasury Department -- through its Vehicle Acquisition Holdings LLC -- would be able to close on the deal after noon on Thursday. GM and the Treasury Department had asked Gerber to make his ruling effective immediately, allowing the sale of GM's assets to close as early as today, but under Gerber's order, GM and the Treasury Department aren't authorized to close the deal until after noon on Thursday, giving objectors a chance to file an appeal and win a court stay. But Gerber warned objectors that the government might not wait that long. "

"It is unclear whether creditors who objected to the sale will appeal, as happened in Chrysler's case, where the objectors' appeal went all the way to the U.S. Supreme Court, which declined to hear the case."

See the entire article here:
http://www.detroitnews.com/article/20090706/AUTO01/907060362/GM-asset-sale-approved-late-Sunday

GM 363 Sale Approved 7/5/09

Sadly, the sale for GM best assets to a new Government controlled entity was approved as a means of circumventing the Chapter 11 bankruptcy and negotiating with the creditors.

See the Court decision here:

http://gmcourtdocs.gardencitygroup.com/pdflib/2968_50026.pdf

See Wall Street Journal article:

http://online.wsj.com/article/SB124685350559099233.html

I assume the appeals by various parties will be filed within the next few days.

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:
http://online.wsj.com/article/SB124654496390486149.html

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.

http://money.cnn.com/2009/07/02/news/companies/GM_bankruptcy/index.htm?postversion=2009070211

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:
http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH98548_2009-07-02_15-14-44_N0245292.htm

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.

http://www.cbc.ca/money/story/2009/07/01/money-general-motors-sale-bankruptcy-hearing.html

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:

http://money.cnn.com/2009/07/01/news/companies/GM_bankruptcy/index.htm?postversion=2009070113

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:
http://www.americanthinker.com/2009/06/the_gm_bankruptcy_and_the_supr.html

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!

http://gmcourtdocs.gardencitygroup.com/pdflib/2756_50026.pdf

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

http://gtv.shadowtv.net/w/playback.action?format=audio/mpeg&guid=A3ED18BB-BA1C-7101-66A7-3836BDACAC6A&ownerguid=1A132ACA-C2CE-960E-7E32-4DD67F07E7CA

Section 2-Click to hear

http://gtv.shadowtv.net/w/playback.action?format=audio/mpeg&guid=DFA394ED-1A6A-7EBC-CC2C-1DD014AFEDA5&ownerguid=1A132ACA-C2CE-960E-7E32-4DD67F07E7CA

Section 2 talks about what to expect. Very good discussion about how the GM plan is legally unsupportable.

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:

http://gmcourtdocs.gardencitygroup.com/pdflib/2628_50026.pdf

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."

http://www.ft.com/cms/s/0/48980682-6326-11de-b803-00144feabdc0.html

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:

http://amlawdaily.typepad.com/amlawdaily/2009/06/gm-update-dissident-bondholders-not-backing-down.html

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.

www.reuters.com/article/governmentFilingsNews/idUSN238817420090623

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.

http://amlawdaily.typepad.com/amlawdaily/2009/06/judge-rejects.html

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.

GM Restructuring Meets Opposition

"A group of General Motors Corp. bondholders moved to block the auto maker's bankruptcy restructuring on Friday, saying the plan discriminates against them in favor of other creditors.The group, which aims to represent small individual GM bondholders, said the auto maker's proposed overhaul, orchestrated by the U.S. government, gives a disproportionate recovery to the United Auto Workers union at their expense." See the WSJ article at:

http://online.wsj.com/article/SB124544333400432269.html

NEW YORK (AP) — A group of General Motors Corp. bondholders and some of the automaker's labor unions filed objections Friday to GM's plan to sell its assets to a new company that can emerge from bankruptcy protection.
Their opposition, along with additional objections filed by consumer groups, a handful of states and cities, and individual retirees, shareholders and bondholders, threatens to put the brakes on what has so far been a speedy trip through the Chapter 11 process.

The Unofficial Committee of Family & Dissident GM Bondholders claim they are being treated unfairly compared with the automaker's other stakeholders and deserve more than the 10 percent stake in the new company that they would receive if the sale goes through.
In its motion, the bondholders group accused GM and the U.S. government of unjustly speeding the case through the bankruptcy process at the expense of the bondholders and dividing the new company's assets "among a few select favored classes." See the entire Associated Press article at:

http://www.google.com/hostednews/ap/article/ALeqM5jDHyGHqjGfzLJa_eRhwViUGCwazgD98U128G0

Small Bondholder Attorneys file objections June 19

OK, some of you folks were getting nervous that the big guns were not ready to fire. I had assumed ("speculated" J) that the major objections would be today, as the deadline is June 19, 2009 at 5:00 PM. The filing is on behalf of the "Unofficial Committee of Family and Dissident GM Bondholders". Very interesting read...here is the original filing from just moments ago.....

http://gmcourtdocs.gardencitygroup.com/pdflib/1969_50026.pdf

Interesting the next document filed, Doc. No. 1970, was filed by the U.S. Trustee objection to the motion that the "Unofficially Committee of Family and Dissident GM Bondholders" not be granted official status. GM and the government are fighting with all they have not to allow the small GM bondholders a voice. Hearing is June 23, 9:45 AM.

http://gmcourtdocs.gardencitygroup.com/pdflib/1970_50026.pdf

Mom and Pop trip up GM restruturing

The Chapter 11 proceedings of General Motors Corp. has hit a speed bump with bondholders -- but not from the hedge funds or pension funds that hold millions of dollars in its bonds. Instead the bankrupt carmaker faces off against a Connecticut accounting professor and his wife who hold $400,000 of GM's bonds...

GM had been doing a good job of neutralizing dissident bondholder groups until May, when the Main Street Bondholders Coalition, which advocates for the rights of GM's thousands of small bondholders, rejected the company's restructuring plan and began pressing Congress to get involved on behalf of individual investors. Additionally an unofficial committee calling themselves "family and dissident GM bondholders" on June 11 sought designation as a formal committee, arguing in a court filing that "there are significant questions about the economic realities" of GM's bankruptcy plan.

See the entire article at:
http://www.thedeal.com/dealscape/2009/06/gm_bondholders_dissidents_bank.php

GM Attorney Wastes No Time in Fighting F andD Committee

The attorneys for GM wasted no time in filing their objections to recognizing the "Unofficial Family and Dissident GM Bondholders" as a official creditors committee. The hearing is scheduled for June 23 at 9:45 AM.

http://gmcourtdocs.gardencitygroup.com/pdflib/1805_50026.pdf

In my humble opinion the debtor's arguments are weak and not of significant merit. They misconceive the principles of the law. ( I sound so legal). We shall see what the Honorable Judge Gerber has to say on Tuesday, June 23rd. I am guardedly optimistic the F and D GM Bondholders will become an Official Committee. That's just "speculation" of course and I could be incorrect. For the folks following this saga I hope you feel the sarcasm every time I use the word "speculate or speculation".