BANKRUPTCY STOCKS
BANKRUPTCY STOCKS
If GM is forced into bankruptcy, are their stocks worthless?
From what I understand, bond holders are being offered pennies on the dollar for the current debt.If bond holders are going through hell right now, you can imagine what common share holders will get.
I believe in a restructured GM, this will be the worst case for common share holders. By the way, if from what I understand, the government is pumping billions into GM and they will get preferred stocks status with this investment. Later, they may convert it into common stocks which will further dilute common share holder value?.
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