What did GM's bondholders get? Equivalent of a toy pony

There's a TV ad running these days that explains exactly why General Motors Corp. is heading to bankruptcy court.

It starts with a man offering a little girl a pony. He then hands her a toy one.

Next, he offers another girl a pony. But when she says yes, he calls out a real pony.

The stunned look on the first little girl's face is the same one plastered all over the faces of GM's bondholders.

They didn't like the original deal GM and Washington offered as the Detroit-based and federally aided automaker sought to fend off bankruptcy by coming to terms with everyone at the table.

Washington was happy. Labor accepted. Secured lenders were in.

It all fell apart when the bondholders saw they were getting a toy pony.

GM's bondholders had expected roughly the same deal being offered to the United Auto Workers.


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