Two small bondholders to contest GM bankruptcy
Accounting professor says GM is improperly selling its 'crown jewels'
A Connecticut accounting professor and his wife are suing General Motors over
its plans to sell assets during Chapter 11 bankruptcy, Reuters has reported.
The pair hold $400,000 in General Motors bonds and are representing
themselves in an action filed in the US Bankruptcy Court in Manhattan.
They claim to be among the 210,000 US households who are ‘voiceless and
defenseless casualties and victims’ being hurt by GM’s plan to sell itself to
GM filed for bankruptcy earlier this month, and the Chapter 11 proceedings
include a plan to fast-track the bankruptcy by selling off a number of core
assets to create a much smaller company in which the US and Canadian Governments
hold sizeable stakes.
Under the plan, GM’s bondholders stand to gain a 10% stake in “New GM.”