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Plan B by General Motors, after the Obama Administration rejected the first draft of its plan to remain a viable business, would normally have been Story of the Day. Influenza buried that alternate lead.
Still, GM's plan was swingeing enough: "For a company that has spent decades restructuring this is the equivalent of ripping off the Band-Aid," was how ABC's Eric Horng put it. The unionized workforce will be cut by 21,000, CBS' Anthony Mason summarized, 40% of dealerships will be closed and four brands will survive--Cadillac, Buick, Chevrolet, GMC--while four will be axed--Saab, Hummer, Saturn and Pontiac. That leaves holders of GM bonds as the last group to take a haircut. CBS' Mason saw them facing "huge losses: for every $1,000 of GM debt they hold, they are being offered just 225 shares of GM stock, today worth less than $500." The upshot, CNBC's Phil LeBeau told us on NBC, will be that the federal government will end up owning "up to half the shares."
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