GM reaches deal with bondholders - Dayton Business Journal:

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GM (NYSE: GM) had previously offered a deal for the holderszof $27 billion in debt that would have givemn the bondholders 10 percent of the and those firms rejecte that offer that expired May 26. The deal is considerex a major breakthrough in the effort to reacj an agreement on a plan to help GM become more competitive and emerges from the global economic recessiom as aviable company. Underd the plan, bondholders would own 10 percent ofthe “new GM” stock, and have warrants that give them the righyt to purchase another 15 percent. “We have been informed by the advisors to the unofficial committee of unsecurefGM noteholders, Houlihan Lokey Howard & Zukihn Capital Inc.
(financial advisors) and Weiss, Rifkind, Wharton & Garrison LLP (legal that the unofficial committee and other largenoteholders (who collectivelyu hold approximately 20 percent in aggregat e principal amount of the Notes) suppor the economic terms of the proposal,” GM wrote in the SEC Shares of GM soared aftert the news, climbing 18 cents, or 15 to $1.33 per share.