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OT: Those with General motors bonds

G

Gun guru

Well-known Member
Well I can sleep easier now. Yesterday afternoon my broker sold all my HGM series bonds, I had invested $10k in an IRA into these bonds that have a face value of $25, and paid 7.38% interest. To make long story short I got all my money back with selling them yesterday at $7.72, I actually made about 5% in 2.5 years on the bonds. The bonds are traded on the delisted bond sheet or something. (my broker called me and asked if I wanted to sell them) I said He!! yes at that price. I am real lucky that I got my money back, a year ago I thought I would be lucky to get 1/2 it back.

If you own GM notes you may want to check and see what you can sell them for.
 
Not really......I think that investors are buying the bonds, not uncle Sambo.

I dont agree with giving GM $50 billion and only having to pay back 6 billion dollars. If it were me I would have liked to see GM bite the bullet and layoff 50% of all the workers, hang the executives from a rope and tell the UAW that they have outlived their usefullness.
 
I thought the bankruptcy killed the stockholders
and bond holders. If so do the investors buying
the bonds know something we do not?
 
The common stock holders were wiped out. Kaput.

The bond holders were left with getting new shares of the "New" GM. (which I dont want) and I refuse to wait around for the "new" shares.
The bonds I bought are now trading on the pink sheets, basically delisted I guess.
Uncle sambo owns 75% or GM and the bond holders own the other 25 % or something, It may be 80/20 or 85/15, but I am not exactly sure.
I am just thankful that I didnt lose all that money.
 
Well, you took a risk by not selling them before the bankruptcy, and it turned out OK for you. Apparently someone likes very expensive toilet paper.
 
There are two different GMs. "New GM" got the government loans and repaid them. G-G's bonds are for "Old GM", which consists of a lot of debt and a few assets that New GM doesn't want. What, if anything, is paid to the holders of those bonds is up to the bankruptcy court. In other words, the repayment of the government loans should have nothing to do with the value of the old bonds.
 
If you don't understand that the Goverment got 61 percent equity in the company for the investment. An investment which will be repaid probably with a profit when there is an IPO, you should refrain from making uneducated comments.
 
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