We report the synthesis and structural characterization of five-coordinate complexes of rhodium and iridium of the type [(η-CMe)M(N^N)] (3-M), where N^N represents the aminopyridinate ligand derived from 2-NH(Ph)-6-(Xyl)CHN (Xyl = 2,6-MeCH). The two complexes were isolated as salts of the BAr anion (BAr = B[3,5-(CF)CH]). The M-N bond of complexes 3-M readily activated CO, CH, and H. Thus, compounds 3-M reacted with CO under ambient conditions, but whereas for 3-Rh, CO migratory insertion was fast, yielding a carbamoyl carbonyl species, 4-Rh, the stronger Ir-N bond of complex 3-Ir caused the reaction to stop at the CO coordination stage. In contrast, 3-Ir reacted reversibly with CH, forming adduct 5-Ir, which subsequently rearranged irreversibly to [Ir](H)(═C(Me)N(Ph)-) complex 6-Ir, which contains an N-stabilized carbene ligand. Computational studies supported a migratory insertion mechanism, giving first a β-stabilized linear alkyl unit, [Ir]CHCHN(Ph)-, followed by a multistep rearrangement that led to the final product 6-Ir. Both β- and α-H eliminations, as well as their microscopic reverse migratory insertion reactions, were implicated in the alkyl-to-hydride-carbene reorganization. The analogous reaction of 3-Rh with CH originated a complex mixture of products from which only a branched alkyl [Rh]C(H)(Me)N(Ph)- (5-Rh) could be isolated, featuring a β-agostic methyl interaction. Reactions of 3-M with H promoted a catalytic isomerization of the Ap ligand from classical κ-N,N' binding to κ-N plus η-pseudoallyl coordination mode.