Losers in General Motors Corp. bankruptcy

A lawyer who represented Chrysler LLC’s dissident lenders has said that the biggest loser in the General Motors Corp. bankruptcy would not be Wall Street, but Main Street instead. It is no secret that GM is close to facing a possible bankruptcy filing on June 1.

According to Bloomberg, this is after they refused to accept a 10 percent equity stake from bondholders in a new company. This new company is part of a plan backed by the U.S. to give both American and Canadian governments an equity ownership; this could be as much as 69 percent, along with a 17.5 percent trust for unions.

In other news, the Chrysler case dissident debt holders decided to disband after 10 days after the company had collapsed, they had cited political pressure when the Barack Obama criticized the group. Bracewell & Giuliani LLP chairman, Evan Flaschen, said, “Uncooperative GM bondholders may be less politically vulnerable.”