GM Bondholders, Unite!

As bankruptcy closes in on what was once the mighty General Motors, the prospects for the small bondholders of the company look darker and darker. GM's latest offer to its largest bondholders have sent the smaller ones into a spin, as they call it discriminatory and unfair towards them.

"The latest GM 'offer' sends a chilling message to all individual bondholders, not just those, like us, holding GM bonds: contracts in America are no longer worth the paper they are written on," said GM Bondholders Unite, an organization representing the small GM bondholders.

The group calls the latest offer a ridiculously lopsided because it favors other groups at the expenses of "legal rights, under the U.S. Constitution, of hundreds of thousands of individual GM bond investors." Below we give you an excerpt of what GM Bondholders Unite said in their release.

The punch line of the statement is the group's request for a fair deal, as they not ask for a bailout or a handout.

"The biggest buyers of bonds - individually, or through mutual funds and pensions - are the elderly, the retired and families saving to buy a house or send their kids to college. The latest 'offer' tramples upon the rights of all of these people."

"What's more, the long-term implications of this "offer" are far greater than the life savings, retirement funds and quality of life we are already likely to lose. By choosing who gets paid more and who gets paid less, instead of adhering to bond covenants and the bankruptcy code, our leaders have chosen the arbitrary rule of man over the established rule of law, a dangerously slippery slope."