GM, Bondholders Strike Sweetened Deal
By Kevin Spak,  Newser Staff
Posted May 28, 2009 9:31 AM CDT
In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.   (AP Photo/Carlos Osorio, File)
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(Newser) – Trading of GM shares was briefly halted today after a committee of its bondholders accepted a sweetened version of the debt-for-equity deal, CNBC reports. The deal may not stop a GM bankruptcy, but would smooth the process. Under the deal, bondholders will go along with GM’s plan to sell its good assets to a new government-funded company, in exchange for a growing stake in this “new GM.”

Bondholders will start out with 10% equity, and that stake will rise 7.5% when the company passes $15 billion in market cap, and again when it passes $30 billion.