GM’s secured lenders are likely to be paid off in full. This is different than their counterparts at Chrysler where senior creditors were required to accept less than the full face value of their loans. GM’s reorganization plan will provide approximately $6 billion to pay off secured creditors. Subordinated lenders, however, typically GM’s bond holders, will likely recover only 12.5 cents on the dollar. While this may seem unfair the logic behind it is that the senior secured creditors were willing to accept a lower return in exchange for having a priority position in the event of the firm filing for Chapter 11 protection. Bondholders, and other subordinated lenders, had agreed to accept a higher return but along with that took the risk that they could sustain significant losses in the event that General Motors had to file for bankruptcy protection.

It has been reported that GM is close to concluding a deal with Koenigsegg, a Swedish manufacturer of high end sports cars. This was reported on Swedish television which also reported that a group of Norwegian investors were part of the proposed deal. Saab, operating under Swedish law, had separated from GM in February and thereafter announced that it was seeking new investors to take over the company. Thus far, unlike the United States government, the Swedish government has refused to provide any loan guarantees or capital infusions. It is withholding such decisions until there is an actual sale of the company. Koenigsegg is a small manufacturer of high-performance sports cars which was founded in 1994 and is recognized as a company that produces ultra fast cars and for its attempts to break speed records.