Gordian Group advised the Unofficial Committee of Family & Dissident Bondholders and counsel in devising arguments supporting the Committee’s objection to the 363 sale of General Motors to a U.S. Treasury-sponsored Purchaser.
Case Study
General Motors
CLIENT: Unofficial Committee of Family & Dissident Bondholders
Industries
Transportation & AutomotiveBusiness Profiles
Situation
Under the terms of General Motors’ 363 sale, certain unsecured creditors of General Motors were to receive a significantly higher recovery than the Committee, despite having substantially the same unsecured claim footing.
Engagement
Gordian Group advised the Unofficial Committee of Family & Dissident Bondholders and counsel in devising arguments supporting the Committee’s objection to the 363 sale of General Motors to a U.S. Treasury-sponsored Purchaser on the grounds of, amongst other arguments, inequitable treatment of similarly situated creditors.
Outcome
In a relatively short time frame, Gordian Group was able to provide Patton Boggs LLP (counsel to the Committee) potential strategic and transactional alternatives to present to the Court, including a potential solution whereby the Court could approve the fast-track sale while permitting the Court (as opposed to the government) to allocate the consideration pursuant to an ensuing plan of reorganization.