A family member holds a GM corporate fixed income bond with a 10 year term (Sept. of 2011 is term end).
Question is:
1. What is the probability GM will enter Chapter 11 bankruptcy?
2. What happens to these smaller bond holders (bonds) in a chapter 11 debt restructuring?
3. Are individual bond holders usually wiped out?
Correct me if I’m wrong but if GM enters Chapter 7, all debt will be wiped out, correct?
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