Top General Motors executives dump their shares at bargain basement prices

[steven johnson]

Looks like GM insiders have voted with their stock options. It's stock won't come back.

Six top executives at General Motors have sold their entire shareholdings in the stricken carmaker for a knockdown price of $315,000 as the
The share sales, disclosed in a regulatory filing to the Securities and Exchange Commission, come as GM stockholders face a bleak outlook. The company is trying to persuade its lenders to convert $27bn of debt into equity under a deal that would involve the issuing of billions of new shares, handing majority control of the company to the US government and to the United Auto Workers union.
Such an arrangement would mean vast dilution in the value of existing shares, which have already plunged in value from $20 to below $1.15 over 12 months.
If the six executives had sold their shares in October 2007, before the economic crisis began, they would have made $8.6m between them.


http://www.guardian.co.uk/business/2009/may/12/generalmotors-automotive-industry

[ChromeFoundry]

1. This totally sucks...

don't need to read tea leaves to see what their plans are for the future of GM.

[2Design]

2. so do they go to jail like Martha - she didn't even walk away with money

these executives did this on PURPOSE - they have robbed the people

[tomreedtoon]

3. The rats deserting the ship.

What did you expect? That they'd dole out the remaining shares to union members, because the UAW supported their insane tactics and bad decisions?

[JohnWxy]

4. "their entire holdings"

[AndyTiedye]

5. They Musta Dumped the Bulk of It Long Ago

$315,000 between 6 top execs? That ain't much.
They must have dumped the bulk of their holdings long ago.

[Yupster]

6. There are really three options I can see

1. The bondholders vote yes on the proposal they're currently voting on. In this case GM reorganizes without declaring bankruptcy and the current shareholders get 1 % of the shares of the restructured company, so they'd be basically wiped out.

2. The bondholders vote no on the proposal and GM declares bankruptcy. In this case the current shareholders get completely wiped out.

3. Something happens last second to save the day. The President ponies up $ 15 billion to pay off the bondholders and make them go away and the company restructures without a bankruptcy filing. Basically the same as # 1 without a vote by the bondholders.

What will happen?

Well the bondholders aren't going top pass the unreasonable offer that was made to them. I'm pretty sure of that much. Is The President going to pay the bondholders off?

Otherwise it's bankruptcy city and the stockholders are last in line to be paid.

So - it's no surprise that GM stock is falling.

[Yupster]

7. The bondholders voted no

They said they needed a 90 % yes vote. The report I heard was the yes vote was in low single digits.

Now its bankruptcy unless the President comes in like the cavalry to buy the bondholders off.