Bond Holders Agree to New GM Deal

Shares of GM were halted earlier today as bond holders agreed to a new deal for an equity swap. Yesterday, the news was that bond holders had rejected a proposal by GM as part of its restructuring efforts. While this new deal could help stave off bankruptcy for the embattled company, it is far from certain. GM could still slide into bankruptcy, even with these efforts.

The new plan, though, allows for a Treasury sponsored company. BloggingStocks reports on some of the details of the latest deal for bond holders:

GM said that an unofficial committee representing unsecured note holders supports new Treasury proposal for a 10% equity in "new GM." New GM would be the new company sponsored by the U.S. Treasury. It would also give them warrants to purchase up to 15% of New GM -- 7.5% at the $15 billion level and another 7.5% at the $30 billion level.

It will be interesting to see where the GM saga goes from here. Restructuring is needed in order to help the company avoid bankruptcy and get further federal aid.