Bondholders committee agrees to GM, Treasury equity offer - Kansas City Business Journal:

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billion of GM’s debt owning 25 percent of the company’se new incarnation. The deal is contingent on GM GM) filing for bankruptcy, which is widely expected by Monday. In a Thursday filint with the Securities andExchange Commission, the Detroit-based automakeer detailed the proposal, in which it would file for bankruptcgy and a court-approved sale of its A new company, sponsored by the Treasury, then would buy the GM said its new agreement with the Treasury Department would give the unsecured bondholders 10 percenty of a newly formed GM’s commonh shares, as well as warrants to buy an aggregats of 15 percent of the new provided bondholders don’t oppose a sale of the curren t GM’s assets to a newly formed GM.
The unofficiaol bondholders committee and other large noteholderes combined hold about 20 percent of the unsecured If bondholders rejectthis offer, the Treasuryy Department will propose a “substantially reducedd or eliminated” amount of commohn equity and warrants issued by the new GM to the old GM, the SEC filinyg said. The new offer to GM’s bondholders is scheduled to expir e at4 p.m. Saturday. The new GM wouldc be expected to haveabout $17 billion in consolidateed debt, of which it woulfd owe $8 billion to the Treasuryh Department, $2.5 billion to a new Voluntar Employee Beneficiary Association (VEBA), $6.
5 billion of othert debt and $9 billio perpetual preferred stock with a 9 perceny dividend, of which $2.5 billion wouls be issued to the Treasuryg Department and $6.5 billion to the new VEBA. The Treasury Departmen t wouldown 72.5 percent of the new GM’sx common stock, the new VEBA wouldx own 17.5 percent, and the old GM woule own 10 percent. The new offer comes two days after GM failedx to get its unsecure d bondholders to trade the unsecured debt forcompany