In the News July 14, 2008

Willa Bruckner Quoted on HedgeWorld.com

Willa Bruckner was quoted in an article appearing on HedgeWorld.com which discussed credit default swap (CDS) holders in the context of General Motors Corp.’s financial troubles in the current market, and the potential of the company to file for bankruptcy at some point in the next five years. “Certainly, if there is bankruptcy, CDS buyers are going to get paid,” Bruckner was quoted as saying. “[However], if they don’t own the underlying debt, they don’t have any direct relation to the entity and, as a result, they can’t put the company directly into bankruptcy. Only the creditors can.”

“A company goes bankrupt when it runs out of assets to pay its obligations,” said Bruckner, noting that CDS holders may not have a direct effect on a company. On the other hand, she pointed out, owners of debt protection can certainly influence stock prices.

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