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Taxtom
Taxtom, Accountant
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Experience:  25 Years in preparing Personal and Business Tax Retuns
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This is more of a finance question, but here goes. I own

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This is more of a finance question, but here goes.

I own a $1,000 bond issued by the old General Motors, now known as Motors Liquidation. Motors Liquidation owns 10% of the old GM, and they have warrants for 15% more. We bondholders are asked to vote on the current reorganization plan in which we bond holders will get some GM stock. What I can't seem to figure out is how many shares of the new GM stock we will get per each $1,000 bond.

Taxtom :

Hello, Sorry this took so long the infromation was hard to come by. It appears that the exchange rate is 2.25 new stock shares per $1,000 face value bond but they are not issuing fractional shares so if you only have one bond it would round down to 2 shares. Here is an article that explains it http://whatsup-stockideas.blogspot.com/2009/05/gm-bonds-exchange-offers-consent.html Thanks Tom

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