Wilbur Ross talks about GM (GM) and Chrysler with AutoNation’s (AN) Mike Jackson on CNBC.
Ross has a fascinating quote on bankruptcy as it related to a few dissident GM bondholders. Ross said “bankruptcy is about forcing the will of the majority on the dissident minority” as it related to the type of restructuring.
This goes to my General Growth Properties (GGP) thesis that in bankruptcy (Chapter 11) the common remains whole. Right now a majority of bond holders have tentatively agreed to postpone payments to talk about restructuring the debt. What we have in this situation a few bondholder holding up the works for the majority. The bankruptcy in this instance would be about forcing the holdout bondholders to restructure as is the will of the others.
There is no talk of debt to equity conversion, just debt restructuring as it related to GGP.
Here is the video:
Disclosure (“none” means no position):Long GGP, none