NEW YORK—Sloane & Company has been retained to support the communications effort for the Ad Hoc Committee of GM Bondholders, which is concerned over the automaker’s proposal to exchange their $27 billion in debt for equity.
The Committee has described that proposal as “unreasonable” and has put forward its own plan, which it says is designed to avoid a lengthy and difficult bankruptcy process that would hurt all stakeholders, save U.S. taxpayers $10 billion in cash, prevent the nationalization of one of the country’s largest companies and provides for a fair and equitable allocation of new GM equity across all stakeholder classes.
GM bondholders are presumably concerned after Chrysler bondholders who rejected the government’s plan for restructuring the company were publicly castigated by President Barack Obama and forced to accept even worse terms in bankruptcy court.
Sloane will focus on high-end, high-stakes financial media. The firm will work alongside Glover Park Group, which has been working with the Committee for some time.