Bondholders, unions object to GM asset sale

NEW YORK (AP) — A group of General Motors Corp. bondholders and some of the automaker’s labor unions filed objections Friday to the company’s plan to sell its assets to a new company that can emerge from bankruptcy protection.

Their opposition, along with additional objections filed by consumer groups, a handful of states and cities, and individual retirees, shareholders and bondholders, threatens to put the brakes on what has so far been a speedy trip through the bankruptcy process.

The Unofficial Committee of Family & Dissident GM Bondholders claim they are being treated unfairly compared with the automaker’s other stakeholders and deserve more than the 10 percent stake in the new company that they would receive if the sale goes through.

In its motion, the bondholders group accused GM and the US government of unjustly pushing the case through the bankruptcy process at the expense of the bondholders and dividing the new company’s assets “among a few select favored classes.”

“GM’s bondholders appear to be the most disfavored and discriminated class in the scheme,” the group wrote, pointing to the 17.5 percent stake the United Auto Workers union is slated to get under the sale.

The group claims to represent about 1,500 bondholders with holdings worth more than $400 million. It’s also asking the court to grant it permission to form a formal committee that would be able to negotiate with GM separately from larger bank and investment firm bondholders. A hearing on that request is scheduled for Tuesday.