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Among the issues the F&D folks raise is the possibility that some of the bondholders who agreed to support the revised deal with GM might have CDS protection (sometimes referred to as a "basis trade"). This is an issue I discussed in my article on CDS and chapter 11 -- the possibility that hedged creditors might support different plans than "normal" creditors, given their downside protection -- and it will be interesting to see if at the sale hearing the bankruptcy court wants to know more about the bondholders who are supporting the sale.

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