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True, but GMAC is its own company, one that just happens to be wholly owned by GM. GMAC is not responsible for GM's debts (and vice versa). If GM goes bankrupt, GMAC as one of its assets will be disposed of as declared by the bankruptcy trustee.

The risk with GMAC is that GM will sell some of GMAC's assets and just keep the money making it unavailable to pay the bondholders (this is known as "looting the subsidiary") but this would most likely be considered fraud.

I don't understand this statement. If GM sells portions of GMAC for, say, $15B, then doesn't that $15B go into GMs cash trove? And if at some later time GM declares chapter 11, doesn't the cash (or a portion of it) in their treasury become avaialble to satisfy the bondholders?

How, then, do they make it "unavailable to pay the bondholders"?
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