Old GM Bondholders Getting Shares in New GM May Depress Price
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Investors holding bonds in the old General Motors Corp. will receive stock and warrants for shares in the new General Motors Co. on April 21, an action that analysts said may depress the stock price.
Old GM, now known as Motors Liquidation Co., will give bondholders 150 million shares in GM and warrants to buy 272.8 million more shares. A trust holding the shares will distribute them directly to bondholders’ brokerage accounts on or after April 21, according to a memo distributed Wilmington Trust Inc., a money-management firm hired by the creditors’ committee.