Question of the day

Should GM take the government’s deal or file bankruptcy?

Definitions
Bondholder: Retirees living off the interest of their GM bonds. (Preferred creditor)

UAW pension fund: UAW retirees living off the principle and earnings of the pension fund.

Federal government: Funding and funneling billions of dollars from taxpayers and bondholders to the UAW Union.

Federal government proposal
Bondholders get 10% of new stock for $27 billion investment

UAW Union pension fund gets 39% of new stock for $10 billion investment

Federal government gets 50% of new stock for infinite past and future funding

Bankruptcy court:
Distribution, through a court-appointed receiver, the bankrupt's assets equitably among creditors. When a person or corporation has declared or been adjudged bankrupt, preferred creditors are paid in full, and the other creditors share the proceeds of remaining assets.