Replies to post #34 on Lehman ABS CorTS 2001-08 7.375% General Motors (CCYPQ)

[marayatano]

Page 19.

"(iv) Finally, if a chapter 11 plan is implemented as contemplated
under the structure of the Sale transaction, Old GM will own 10% of New
GM’s common stock on an undiluted basis. In addition, if the allowed
prepetition general unsecured claims against Old GM exceed $35 billion,
Old GM will be issued an additional 10 million shares, amounting to approximately 2% of New GM’s common stock. Old GM will also own the two warrants mentioned above."

The "two warrants mentioned above" portion:

"(v) two warrants, each to purchase 7.5% of the post-closing
outstanding shares of New GM, with an exercise price based on a $15
billion equity valuation and a $30 billion equity valuation, respectively"

http://www.nysb.uscourts.gov/opinions/reg/28_2967_opinion.pdf

Looks like "we" are getting a little more of the new GM.

Also, "old GM" is the unsecured creditors, "us." I do not know why they call it the "old GM."