Yea this is not going well for bonds, tnx is already above 3.

In a filing today with the SEC, GM announced that it would issue 60 billion new shares, in order to "pay off" debts to the government, its bondholders and the UAW. And since the government would end up being the majority owner, only the approval of the US Treasury would be needed.

As a result of the flood of new shares, existing shareholders, much as previously expected, would end up owning 1% of the pro forma equity, and assuming straight mathematic dilution, the shares which closed at $1.85 would be worth a little over 1 cent.

Specifically, the actions contemplated by the filing are as follows:

   * Increase the number of authorized shares of GM common stock to 62 billion shares;
   * Reduce the par value of GM common stock from $1 2/3 per share to $0.01 per share; and
   * Effect a 1-for-100 reverse stock split of GM common stock, whereby each 100 shares of GM common stock registered in the name of a stockholder at the effective time of the reverse stock split will be converted into one share of GM common stock.