I wished I knew more about GM senior debt shares. I am looking at GMS. It is selling here at less than 8% of face value. I would think the debtholders would end up with the company. I have heard ranges to 16 to 30 cents on the dollar going to the bond holders.
Thoughts?
"Senior Notes are general, unsecured and unsubordinated obligations of the company and will rank equally with all existing and future unsecured and unsubordinated indebtedness of the company."
General Motors Corp., 7.50% Senior Notes due 7/01/2044
Ticker Symbol: GMS CUSIP: 370442121 Exchange: NYSE
Security Type: Exchange-Traded Debt Security
SECURITY DESCRIPTION: General Motors Corp., 7.50% Senior Notes due 7/01/2044, issued in $25 denominations, redeemable at the issuer's option on or after 6/30/2009 at $25 per share plus accrued and unpaid interest, maturing 7/01/2044, distributions of 7.50% ($1.875) per annum are paid quarterly on 1/1, 4/1, 7/1 & 10/1 to holders of record on 15th day of the month preceding the payment date. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. The Senior Notes are general, unsecured and unsubordinated obligations of the company and will rank equally with all existing and future unsecured and unsubordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.