That is not correct . In Chapter 11 bankruptcy restructuring , stock holders "can" lose everything , During Chapter 11 bankruptcy, bondholders stop receiving interest payments, If you are a bondholder, you may receive new stock in exchange for your bonds, new bonds or a combination of stock and bonds. What happened was bond holders lost value and the UAW ( which promised to vote for Obama) received a 17% stake in the reorganized company . People should go to jail .
Bond holders were offered stock exchange equity and refused. GM obviously couldn't meet it's obligation to any of it's investors including the interest burden to bondholders. GM scrambled to do their own negotiating with investor groups, including bondholders. The government mandated the deadline to get it done. The bondholders apparently weren't interested in the option. It seemed like an all or none choice to me.
The auto industry bailout was politically bipartisan, Bush started it, Obama continued it, thankfully for the 'overall' state of the economy. Investments carry risk particularly if you don't diversify those investments, you risk the chance of losing it all. I don't understand blaming the current administration and not GM's own mismanagement. Maybe I do understand it. What about the current Administration's continuing support of the DOE's ATVM Loan Program! We have to all agree that's good for Elio when their loan app is approved, don't we?
Relating this to Elio Motors investors, I hope their investments are secure and they are getting a good night's sleep. Also, I hope EM is better at managing venture capital and growing a business than GM.
