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Jun 1, 2009

A haircut or a headcut for GM bondholders?

Bill Zastrow owns $240,000 of General Motors bonds. He’s not happy, but, as he told Reuters’ Kevin Krolicki, “We were getting the Marie Antoinette haircut and now it looks like it’s a few inches higher.”

The best guess is that his holding is now worth about $22,000, not far away from the sum he used to get in annual interest, but that’s better than the zero-to-$12,000 which the earlier offer to bondholders implied.

May 28, 2009

Toxic asset-maker survives again

Ineos Group, popularly described as Britain’s largest private company, has escaped the hangman’s noose again. For the second time, a sufficient majority of the 230 banks to which it owes 7.5 billion euros have granted it a stay of execution.

  Last month, the 7.875 per cent 2016 bond was trading at 7 per cent of face value, but since then the price has jumped to 28. Its other debt has also risen strongly.

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      "City Editor, The Daily Telegraph 1986-2005 City Editor, The Sunday Times, 1984-1986 City Editor, Evening Standard, 1979-1984 Director Templeton Emerging Markets Investment Trust plc, Finsbury Growth and Income Trust plc Passion: fly fishing (and wife Julia and seven-year-old twins)"
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