Part 2
That would be made possible by the automaker's new (contract) with the United Auto Workers union, details of which were revealed Tuesday. If ratified, the agreement would give the (union) a 17.5% stake in a restructured GM rather than the (previously) proposed 39%, potentially allowing bondholders to take a larger position in the company.
Talks among the Obama (administration), GM and its bondholders are continuing, said a source familiar with the discussions who requested (anonymity) because he was not authorized to speak publicly. Those discussions recently have been "far more constructive and orderly" than before, according to the source.
Also at issue, the source said, was how much of a (stake) to give the government of Canada, which has offered to help finance GM's bankruptcy.
At the same time, another key stakeholder, the United Auto Workers union, was (preparing) to vote on a tentative contract designed to keep the company solvent.
In exchange for a 55% reduction in cash obligations to a UAW retiree (trust), GM would grant the union a 17.5% share in the company, along with $6.5 billion in (preferred) stock, a $2.5-billion note and warrants for an additional 2.5% of the automaker, according to union representatives who have reviewed the (tentative) contract.