GMAC bondholders’ successful negotiation of improved terms on their $38 billion exchange and tender offer is a rare example of creditors being able to flex their muscles in today’s market. GMAC, desperate to achieve bank-holding status by boosting its regulatory capital to $30 billion, originally offered bondholders a split between a cash offer of as little as 55c on the dollar (capped at $2 billion) or new senior notes and 5% preferred GMAC stock.
Holders of its $4 billion existing 2031 notes were offered new subordinated debt of GMAC Bank.
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