GM tries to make a deal with the bondholders but the bondholders turn it down. Maybe I'm not following or understanding the bankruptcy laws. If GM goes to bankruptcy won't the bondholders be stuck with worthless paper? They were after all offered a 10% stake in the company which sounds far better than walking away with nothing. The workers were offered a 17.5% stake which they took. If you ask me the worker should have gotten a bigger piece because nothing turns a company around faster than workers who have a vested interest in making a profit for the company.
For GM to cut it's dealer base made no sense to me. The dealers were indepentant of GM so why would GM care? If a dealer wasn't doing well he'd go out of business anyway.
And what ever happened to Lee Iacoca the great savior of Chrysler?