The Am Law Daily received an e-mail Monday from Michael Richman of Patton Boggs saying the group of bondholders who oppose the plan to sell General Motors out of bankruptcy will not appeal a judge’s ruling Sunday approving that sale.
With that, there may be no remaining obstacles to the controversial plan to sell most of GM to a consortium backed by the U.S. Treasury, which will take a 60 percent stake in the new company. Richman represents three dissident bondholders who have objected to the plan on several grounds, including that small bondholders will be forced to accept pennies on the dollar while other unsecured creditors will get better deals. The United Auto Workers, for instance, will receive a 17.5 percent stake in the company and ownership of billions in GM notes.
