A group of bondholders has hired Andrew Rosenberg, a partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP, to represent them in opposing GMAC LLC's planned debt exchange.
GMAC notes are to be bought back for as little as 55 cents on the dollar or swapped for an equivalent amount of new senior guaranteed notes and preferred stock. GMAC, the largest lender to General Motors Corp. car dealers, said Nov. 20 that it had applied for status as a bank holding company so it can get access to the Treasury Department's $700 billion rescue fund and avoid default.
As part of the plan, it began an exchange offer for $38 billion of notes issued by the Detroit finance company and its Residential Capital LLC mortgage unit to reduce outstanding debt levels.
Holders of about $18 billion of the $26 billion of GMAC debt eligible for the exchange participated in a Nov. 25 conference call to discuss their plan, Mr. Rosenberg said in an interview from his New York office. "We are in the process of considering the next steps," he said.