Questions on GM Bankruptcy and Debt-Relief

Questions on GM Bankruptcy and Debt-Relief

Here is a look at GM's balance sheet (only the liability portion_ on Dec. 2008; Dec. 2007; Dec. 2006 that I got from finance.yahoo.com .

Dec. 2008; Dec. 2007; Dec. 2006 Liabilities Current Liabilities Accounts Payable 24,827,000 64,291,000

63,370,000 Short/Current Long Term Debt 18,472,000 6,047,000 5,666,000 Other Current Liabilities 30,635,000

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Total Current Liabilities 73,934,000 70,338,000

69,036,000 Long Term Debt 31,603,000 38,556,000 42,505,000 Other Liabilities 69,027,000 72,502,000 78,902,000 Deferred Long Term Liability Charges 1,823,000 2,967,000 - Minority Interest 814,000 1,614,000 1,190,000 Negative Goodwill

- - -

Total Liabilities 177,201,000

185,977,000 191,633,000

I realize that GM has declared bankruptcy a few months ago, and this has nullified much of their debt, BUT NOT ALL OF THEIR DEBT. My questions involve this facet just mentioned as well as questions on this balance sheet. Q1: Why isn't ALL their debts forgiven/nullified, instead of just select portions of the debt? Q2: How is it determined that some of the debts get cancelled and others are retained? Q3: Is it possible to determine the interest rates on GM debt? I did a cursory calculation, and it appears to be 18.472% for Dec. 2008, since (Short/Current Long Term Debt is equal to) $18,472,000, and this is to be divided by (Long Term Debt, which is equal to) $31,603,000 = 18.4%. I am very sure that this is a wrong calculation.