Bondholders present plan to win GM control and save taxpayers $10 billion

It is good to see both the GM and Chrysler bond holders fighting back. Let us hope that they still have a chance in the courts against the government and the unions.

General Motors Corp. bondholders on Thursday presented a counteroffer to the automaker's debt swap that would relieve creditors of their $27 billion of debt in return for a majority stake in the company.

The move also aims to ease concerns over the U.S. government nationalizing the Detroit giant and comes as the Obama administration announced that rival Chrysler, which saw its negotiations with bondholders collapse, will file for bankruptcy. See full story.

The ad hoc committee of GM (GM: 1.92, +0.11, +6.1%) bondholders said their plan would see them get 58% of the new company in return for debt forgiveness while saving U.S. taxpayers $10 billion in cash. The union health-care fund, based on the $20 billion in benefits owed, would own 41%.

Existing stockholders would receive 1% of the new GM under the plan. . . . .