Does the US Federal government really think this statement is an acceptable way of doing business? The Hedgefund lenders that are holding out have absolutely no reason to play ball, if this deal is anything like the deal that the Treasury expects GM bondholders to take then why on earth would they? How can Union's liabilities be paid at almost twice the recovery rate of a senior bondholder?
"failing to act in their own economic interest and that of the nation"???? they have a fiduciary duty their investors, they have zero responsibility for employment and politicians approval ratings, they are legally bound to act in the interest of their investors and if that requires going through chapter 11 restructuring then thats the way the cookie crumbles. The whole point about being a lender and not having equity like returns and optionality is that you are first in the queue when it comes to bankrupcy, why is it that politicians believe we can chuck legal procedures, property rights etc. out of the window??
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