New York Times Blogs – In his court testimony on Wednesday in New York, Mr. Wilson — formerly a senior executive of Silver Point Capital, a hedge fund specializing in distressed-debt investments — described some of the negotiation process that shaped G.M.’s bankruptcy case. The administration’s auto task force had decided upon an asset sale plan by mid-May, as G.M. began a debt-exchange offer with its bondholders as part of a government-supported restructuring plan.

By pursuing an asset sale, G.M. could be assured of greater speed, certainty and the ability to shed unwanted liabilities, Mr. Wilson said.

Because the government was essentially G.M.’s lender of last resort, it could effectively dictate what it found acceptable as a turnaround plan, Mr. Wilson testified.

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bankruptcy case, blogs, bondholders, court testimony, debt exchange, debt investments, distressed-debt, hedge fund, lender of last resort, liabilities, mr wilson, negotiation process, new york times, rsquo, silver point, task force, turnaround plan