Part 4
The automaker made the (tender) offer in April, proposing to swap 225 shares for every $1,000 in bonds. Critics said the deal significantly undervalued their debt in (comparison) with that held by other stakeholders -- they would be getting 10% for $24 billion, while the U.S. Treasury would get at least 50% for significantly (less) debt forgiveness.
Bondholders made a counter (proposal) that would give them 58% of the company in exchange for their debt, with the UAW and existing shareholders holding the (rest). GM ignored the offer.
In the meantime, GM creditors, many of them individual investors who (purchased) $25 retail bonds in recent years, have (loudly) protested the plan.
The majority of GM bonds, however, are (held) by institutional investors and speculative traders, many of whom (bought) the debt at a discount.
Many bondholders believe they could get a better deal from a bankruptcy (judge) than under the proposed deal.
But because the government will provide the financing for the bankruptcy (process), some experts predict the creditors could find the same (deal) forced on them by a bankruptcy judge.