Yesterday, General Motors and its bondholders had officially called it quits, and GM was headed for a certain and certain-to-be-rocky bankruptcy. Today, according to a company filing, The General and the necessary chunk of its bondholders have come to an agreement, and the company looks to be headed to a slightly less rocky bankruptcy.
There was a minority group of some 20 Chrysler lenders that were fighting the repayment arrangements Chrysler was trying to make before Chrysler declared bankruptcy. Led by Oppenheimer and Stairway Capital, they were owed $2.9 billion and didn't feel they were getting all they could. After Chrysler declared bankruptcy the group continued to fight the repayment arrangements, saying they were owed more remuneration as holders of secured debt.