GM 'Main Street' Bondholders Coalition Endorses Ad Hoc Committee's GM Restructuring Plan

Counteroffer Treats All Parties Fairly, Protects Seniors and Prevents Bankruptcy

WASHINGTON, May 1, 2009: GM "Main Street" bondholders agree that the GM Ad Hoc Bondholder Committee's counteroffer to the Administration's plan is the best solution for all stakeholders. The counteroffer follows the launch of the GM "Main Street" Bondholders Coalition, a project of The 60 Plus Association, that brought hundreds of small bondholders together this week in Warren, Michigan with the city's Mayor, Jim Fouts.

The counteroffer proposed that bondholders retain 58 percent of GM's ownership and the union-backed Voluntary Employee Beneficiary Association (VEBA) would retain 41 percent ownership--a higher stake for the union than what the Obama Administration's Auto Task Force proposed on April 27.

"Yesterday's counteroffer is a fair and respectable deal which can save GM from bankruptcy. It's a win-win for all, including taxpayers," said small bondholder Chris Crowe, an electrician and home inspector from Denver, CO. "This week's cry in Warren, MI, was heard. Now we have to wait and see if it was loud enough for the Administration to hear. We simply want a fair deal, one that will allow me to pay my son's college tuition as planned with the money I have invested in GM bonds."

Unlike large investment companies, small bondholders are average citizens who were concerned that GM's bankruptcy would wipe them out. Accounting for nearly a quarter of GM bondholders, these investors rely on their bonds for retirement savings, medical expenses, and other necessities.

"Yesterday's counteroffer is promising. It saves GM from bankruptcy and restores GM bondholders' rightful stake in this important company," small bondholder Dennis Buchholtz, retired dye making trade worker from Warren, MI, said. "A significant portion of my retirement savings is held in GM bonds and I don't want to see the company collapse. Small bondholders need a seat at the negotiating table to support this proposal."

"Small investors are financing their retirements, school payments for their children, and medical expenses with bonds purchased from the icon of corporate America, GM," 60 Plus Vice President Amy Noone Frederick said. "We urge The Administration to hear the voices of the thousands of GM "Main Street" bondholders that have been ignored. The first offer by the government ignored retirees and soon to be seniors while this counteroffer is much more equitable and fair - it protects senior's life savings, our beloved GM and taxpayer dollars."

60 Plus, an advocacy group for senior citizens which has more than 5.5 million supporters nationally and has received hundreds of emails from individuals worried about a potential GM bankruptcy and its impact on their retirement savings. The organization represents small bondholders as an unheard voice that should be taken into consideration at the bargaining table. This counteroffer to "Main Street" bondholders is fair for our membership and supporters.