[Hat Tip: You know who you are…]
I heard the radio commercial touting the loan "payoff" this morning on the way to work. It struck me that not only is GM lying to us, but they are "plagiarizing" Chrysler too. That line about "we paid off our loan years early with interest" is taken directly from what Chrysler actually did in the 80's. They paid their loans from private banks (not the government) early and with interest when many pundits (just like today) said they would never make it. I believe that GM is trying to cast themselves in the same light as Chrysler back in the 80's, which they know many people still remember.
I'd find GM's statement much more credible if it was written in complete sentences.
This email has one giant sentence fragment and improper comma usage. Nice proofreading. She sent this to how many people?
The only one more illiterate than Hummer Susan is Aztek Mark Reuss. He talks like a a 11th grader in a remedial English class. He must have partied a lot at Vanderbilt, as most rich kids who go there to spend daddy's money are known to do.
GM's bondholders were not secured, and were well back in the line behind GM's (many) other creditors.
Ergo, were it not for the government's assisted suicide of Old GM, those bondholders would have gotten table scraps. Pre-bankruptcy, GM was functionally worth nothing, and what assets it had would have gone to lien holders. The bond-holders would have ended up with GM's cash.
Guess how much actual cash GM had? Hint: you'll have trouble using numbers above zero.
In theory, yes, the Obama administration did provide a structure to GM's bankruptcy which is a little different than letting GM twist in the wind. Without that structure, financing and guarantees of equity, those poor, bedraggled bondholders would have gotten nothing.
So no, they didn't "get screwed". If they think that, they are were clinging to a false assumption about what their bonds were worth, or being deliberately disingenuous for the sake of the own, undeserved, gain.
Recall that those bonds were rated Junk for years prior. The bondholders "getting screwed" was little more than PR stunt to try to wring blood from a stone. Unfortunately, the "poor little old lady" bondholder, supposedly screwed by Big Bad Barack Obama makes a really good image for the Right to cling to. But just as Reagan's "Welfare Cadillac" or Hillary Clinton's "Running under Fire" was, it's pure, heartstring-tugging fiction.