The difference between new and old? None

People ask what’s the value of the shares of the old GM.
The answer is: nothing.
It’s a penny stock on his way to zero.
What will be the value of shares in the new GM?
Well, because the old GM’s US pension fund with almost 100.000 million USD in liabilities is transferred to the new GM, the shares of the new entity could be worth as much as the old shares in a couple of years.

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The taxpayer is giving some money away.

The terms for walking out of GM are published here.
Taxpayers are paying the following:

- GM is offering $20,000 cash and a $25,000 car voucher to production workers who decide to retire with their benefits.
- For skilled-trades workers, the cash portion of the retirement package is $45,000 with the same car voucher.
- For those not eligible to retire, GM also is offering more cash to walk away and sever all ties with the company, along with the $25,000 car voucher.
- Employees with less than 10 years could get $45,000. Those with at least 10 years but less than 20 are being offered $80,000. For those with 20 years or more, it’s $115,000.
- Those with 28 or 29 years at GM are being offered a bridge to retirement, with the company providing a monthly gross wage of $2,850 or $2,900 until qualifying for retirement.

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Exit

GM on its way out…

GM’s bondholders have reached a deal after failing to agree on 27 bln USD in unsecured debt. GM had proposed an exchange where bondholders would receive 10% of the equity of the restructured company.
A new proposal was filed whereas bondholders would receive 10% and an option to purchase up to 15% on condition they did not oppose the government-sponsored restructuring. The US Treasury would own 72.5% and the United Auto Workers 17.5%.
The exchange offer will be open to bondholders until Saturday 5 p.m.

And the: Which company will replace GM in the indices?

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