The so called "Unofficial Committee of Family & Dissident GM Bondholders", which said it represented some 2,000 individual GM bondholders holding roughly $500 million of GM's debt made their case by stating they are not properly represented in the bankruptcy process, Autonews reported.
"Some people think we are insane to be standing in the way of this process, but this is about adequate representation," Michael Richman, the group's attorney was quoted as saying in court.
Judge Robert Gerber rejected the group's request, saying that this is not the case, as the debt-holders are well represented in the bankruptcy case by the 15-member official unsecured creditors' committee.
The judge argued that appointing new committees should be done in extraordinary circumstances only because "history tells us when someone else pays for one's expenses, spending restraint goes out the window."
The "Unofficial Committee of Family & Dissident GM Bondholders" is determined to continue to oppose the fast bankruptcy process GM is now going through. Even so, the group's attorney doubts they will manage to achieve anything, given the limited resources they have at their disposal.
The group will now seek help from the official committee. They are planning to raise their objections before the approved body and see whether any of their requests will be heard. Whatever they wish to accomplish, it must be prior to June 30, when GM's sale request is scheduled for a court hearing.
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