Last night it looked like General Motors (GM) had failed to get its bondholders, who own $27 billion in its debt, to accept a deal to get 10 percent of the new GM in exchange for their bonds. But this morning it looks like the bondholders have accepted a sweetened offer that will give them 10 percent of the new GM plus warrants to buy 15 percent more if stock in the new GM rises enough.
As I posted, yesterday's plan would have given the U.S. most of the new GM. Specifically, the U.S. will get 72.5 percent of the stock of a new GM -- which sells just Chevrolet and Cadillac products -- and another 17.5 percent will go to the UAW. To get from here to there, the U.S. will chip in $50 billion in debtor-in-possession financing, 1,300 more GM dealers will lose their franchises, and 14 plants will close by the end of 2010.