Uh-well, its a little bit more complicated than that. You have to remember that 'old GM' was in bankruptcy, so the common shareholders are last in line, meaning they weren't going to be getting anything. So, really the story in bankruptcy is who, amongst the creditors gets what. Well, in the case of GM, the government provided debtor in possession financing, also the union WAS a creditor of GM. Believe it or not, as a CREDITOR, the union had higher priority than common shareholders. However, the union's creditor position, its 'priority' was well behind other creditors including some teacher's pension funds out of Indiana - the difference remains the government's contribution of signiificant DIP financing
The Democratic convention took place in an alternative universe in which Mitt Romney wanted a very ominous "bankruptcy" for General Motors and Chrysler -- a catastrophic event that would have put millions out of work. Alternatively, speaker after speaker kept telling us, President Barack Obama implemented a "rescue" that saved all those jobs and avoid that fateful "bankruptcy." It's as if, somehow, not a single Democrat remembers the historic bankruptcy filings by Chrysler on April 30, 2009 and General Motors on June 1, 2009. Which is pretty weird, because they were among the largest bankruptcies in history.
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