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Non-Tech : GM - General Motors
GM 68.22-1.3%9:30 AM EST
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From: Arthur Tang6/15/2009 6:37:23 PM
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GM prepackaged bankruptcy plan was to split into two companies. MPA owned by the US treasury will have all the assets and union contract to be the manufacturing arm that GM does not own, and protected from creditors.

GM itself will be just a sales organization, buying cars from MPA to sell to the dealers. GM will shed many brands it bought over the years, and keep five brands of their own in sales only.

Then, bondholders will get 10% of MPA stock, and creditors and stockholders will get warrants of 15% of the stock of MPA.

So, stock value will rise and fall with the prospect of MPA making money, and GM making money on their sales to dealer network. GM stock will have value if GM sale organization has no debt and the corporation stay in business.
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