Federal Government To Invest $30b In GM

In an effort to get bondholders to agree to terms, the Federal Government is willing to invest a further $30b in GM, on top of the nearly $20b it's already funded.

So far it seems the Government is going to own 72.5% of GM, the United Auto Workers (UAW) union's trust fund will own 17.5% (with a possible 2.5% increase in its stake later), and the bondholders (who hold $27b in GM debt) are expected to receive the remaining 10%, with warrants to buy an additional 15% share at a later date.

Current stockholders would essentially see their investments rendered worthless as GM is nationalized. They would also likely get nothing should the company file for
bankruptcy protection.

No word yet on whether GM will file bankruptcy.