Blackwell
2009-06-03 11:16:00
70 and 63: I wouldn’t lose sleep over the poor bondholders. They deserve your contempt not your sympathy. They invested in a failing enterprise that was obnoxious to commmon sense and fairness. They got hammered.
Anyone that invested in a company with a debt/asset ratio almost 20 times the wrong way was counting on a state bailout. No one that bothered to read any article on GM could have thought it was a sound enterprise. So their choice was simple: go into a straight BK and get nothing as administrative costs and fees consumed the few assets, or strike a deal with the contributor of new cash. It happens all the time.
