From the “You knew this was coming” department – GM has filed their restructuring S-4 with the SEC and they are restructuring pretty much as a government concern:

- U.S. would get 51% pro forma stake with debt conversion
- Bondholders would represent 10% of new pro forma stock
- Existing common stock would represent 1% of new pro forma stock
- Pro forma stock to be issued for VEBA, U.S. Treasury – 31.2 billion
- Bondholders get 225 shares of stock for every $1,000 in bonds, parallel with humongous dilution
- Debt to be cut at least $20 billion between debt conversion/VEBA action
- If tender is not agreed to, company files bankruptcy

No clue why the stock is up 20% as I write this if the existing common is going to be this diluted but I have given up on expecting this market to make sense. As Jason told me, he’s glad we’re getting something out of this deal, though he would have prefered a ’10 Camaro, and I am with him on that.

Something else Zero Hedge found in the S-4 which is truly laughable:

“given the slow pace of the turnaround, the assumptions in GM’s business plan are too optimistic”; and even under “optimistic assumptions [GM] [will] remain breakeven, at best, on a free cash flow basis through the projection period, thus failing the fundamental test of viability.”

So, US taxpayers… call up the family, tell them all you just bought a shiny new car (company). Then when they ask to go for a ride, tell them you’ve already been taken for one.