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Recent stock dilutions brought GM's shares down to the current 7.9percentt as Isuzu debt was converted into equity.
Much of that private debt was converted into increased state debt which the same "markets" are now betting against.
G.M. repaid $6.7 billion in April, but the remainder of its government debt was converted into a 61 percent equity stake.
A year later the company emerged and the bondholders' debt was converted into equity.
The debt was converted to equity, and now Third Avenue owns more than 13.8 million shares of the new company.
In 1850 the S&DR had share capital of £250,000 but owed £650,000, most of this without the authority of Parliament until 1849; the debt was converted into shares in 1851.
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Shareholders also stand to see their holdings diluted when the debt is converted to company shares.
Suggestions that the bank restructuring could involve senior bondholders surfaced on Friday when The Irish Times reported that options being discussed included debt being converted into equity, or bond investors being given the choice of injecting fresh capital into the newly restructured banks or taking a loss.
I suspect better returns lie ahead when the unsecured debt is converted to equity and warrants in the new GM, prior to its IPO next year.
Loath to anger ordinary Argentines, Mr. Duhalde initially ordered that all dollar debts be converted into pesos at a rate highly favorable to debtors, which would have meant billions of dollars in losses for banks.
Many initially bought MGM debt, which was converted to equity in 2010 as part of a prepackaged bankruptcy.
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