7

I bought some General Motors bonds (ETF-traded under "XGM" symbol) when they were at depressed prices, before GM declared bankruptcy. GM is supposed to be having an IPO sometime in November, and bondholders are getting some of the equity of the new GM.

How would I find out how many shares of the "new GM" I will get for each of my bond shares in XGM? (has this been determined yet? If not, when?)

  • 1
    +1 for asking "How would I find out..." instead of "How many shares.." – Alex B Sep 28 '10 at 16:46
7

Depending on the specific bond, here is the official info. http://www.wilmingtontrust.com/gmbondholders/index.html

Bottom line, it won't be determined for a while yet, as the filing with the Bankruptcy Court still has lots of blanks.

6

I would imagine that as a holder you will receive information in the post when it's made public, but I don't think it's been decided yet. This thread on the Motley Fool boards is keeping an eye on them - you might want to keep an eye on the thread.

1

Looks like the result got decided recently, with a little uncertainty about exactly how much is the total allowed claims:

http://www.wilmingtontrust.com/gmbondholders/plan_disclosure.html http://www.wilmingtontrust.com/gmbondholders/pdf/GUC_Trust_Agreement.pdf

They give the following example:

Accordingly, pursuant to Section 5.3 of the GUC Trust Agreement, a holder of a Disputed Claim in the Amount of $2,000,000 that was Allowed in the amount of $1,000,000 (A) as of the end of the first calendar quarter would receive:

Corresponding to the Distribution to the Holders of Initial Allowed Claims:

  • 3,571 shares new GM
  • $10.00 warrants to acquire 3247 sh new GM
  • $18.33 warrants to acquire 3247 sh new GM
  • 1000 units

Corresponding to the First Quarter Distribution to Holders of Units:

  • 43 shares new GM
  • $10.00 warrants to acquire 39 sh new GM
  • $18.33 warrants to acquire 39 sh new GM

Total:

  • 3614 shares new GM
  • $10.00 warrants to acquire 3286 sh new GM
  • $18.33 warrants to acquire 3286 sh new GM

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