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GM BANKRUPTCY PLAN CALLS FOR QUICK SALE TO GOV'T
Reuters Via Drudge Report ^ | 05/19/2009 | Chelsea Emery and Tom Hals

Posted on 05/19/2009 12:29:20 PM PDT by autumnraine

Edited on 05/19/2009 2:07:32 PM PDT by Admin Moderator. [history]

I am speechless. Are we Russia yet?

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday. The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source. The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims. GM has about $6 billion in secured debt, including a secured revolving credit and bank debt. The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans. In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.............


TOPICS: Business/Economy; Constitution/Conservatism; Government; News/Current Events; US: Michigan
KEYWORDS: america2point0; automakers; bho44; commie; communism; cw2; elitism; elitists; facism; fubo; generalmotors; gm; governmentmotors; manufacturing; messiah; nationalization; obama; obamarocks; obamunism; oligarch; paranoidfreepers; reddawn; socialism; socialistblitzkrieg; starkravingsocialism; statism; uaw; uawmotors; youlostgetoverit
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1 posted on 05/19/2009 12:29:21 PM PDT by autumnraine
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To: autumnraine

No, Russia has learned and backed away from Socialism.


2 posted on 05/19/2009 12:30:31 PM PDT by brownsfan (Kool aid comes in two new flavors: Hope and Change.)
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To: autumnraine

Read the fine article. It talks of creating a new company, and the gov taking over GM then selling to this “new” company any “healthy” assets. Guess this means the “unhealthy” assets would twist in the wind or be transferred to the same imaginary hole where the gov is storing the “toxic” assets it bought.


3 posted on 05/19/2009 12:31:51 PM PDT by epluribus_2
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To: autumnraine

Best of luck to Government Motors. I’ll move to Russia before I buy a car from Hussein Obama.


4 posted on 05/19/2009 12:32:14 PM PDT by jpl (Help us Obambi Wan Kenobi, you're our only dope.)
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To: autumnraine
First paragraph: NEW YORK (Reuters) - If General Motors Corp files for bankruptcy, as widely expected, plans include a quick sale of the automaker's healthy assets to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday.

If someone told me that Obama would nationalize the banks and the auto industry in his first 150 days, I would have thought them crazy. This is truly astonishing.

5 posted on 05/19/2009 12:32:31 PM PDT by Pete
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To: autumnraine
bo/alterego Thanks to our great leader.
6 posted on 05/19/2009 12:32:49 PM PDT by jongaltsr (Hope to See ya in Galt's Gulch.)
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To: brownsfan

If no /sarc, how has Russia shied away from socialism? (Honest question)


7 posted on 05/19/2009 12:32:49 PM PDT by VanillaBlizzard
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To: autumnraine

Link to article now up:

http://www.reuters.com/article/mergersNews/idUSN1943363120090519


8 posted on 05/19/2009 12:32:54 PM PDT by autumnraine (Freedom's just another word for nothing left to lose- Kris Kristoferrson)
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To: brownsfan

“The board of the new company would be established with the tacit approval of the government.”

Obama puppets no doubt.....here comes shoe sized cars


9 posted on 05/19/2009 12:33:23 PM PDT by Robe (Rome did not create a great empire by talking, they did it by killing all those who opposed them)
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To: epluribus_2
Guess this means the “unhealthy” assets would twist in the wind or be transferred to the same imaginary hole

You mean the taxpayers would be left holding the bag?

10 posted on 05/19/2009 12:33:31 PM PDT by Glenn (Free Venezuela!)
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To: autumnraine

Just wait until the end of Obama’s second term.... we’ll be worse off than Venezuela...


11 posted on 05/19/2009 12:33:42 PM PDT by Sleeping Freeper
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To: jpl

I have always bought GM cars in the past but will no longer do so. I suspect there are a lot of people who feel the way we do.


12 posted on 05/19/2009 12:34:24 PM PDT by TaxMe
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To: autumnraine

Just like in Britain after WW-II, major industries were forced to sell themselves to the government. These government run British industries, like coal mining, were run with enormous deficits solely to benefit the unions and crippled the British economy for decades. It took Margaret Thatcher to undo this mess and restore at least some sanity to the British economy. Let us hope we can have another Thatcher or Reagan to quickly lead us out of this mess.


13 posted on 05/19/2009 12:34:34 PM PDT by The Great RJ (chain.)
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To: autumnraine

Calf-rope!


14 posted on 05/19/2009 12:34:55 PM PDT by TornadoAlley3 (Obama is everything Oklahoma is not.)
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To: autumnraine

>>I am speechless. Are we Russia yet?<<

No we’re aiming to be the people Russia makes fun of for not being capitalist enough.


15 posted on 05/19/2009 12:35:03 PM PDT by gondramB
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To: epluribus_2

Worse. Healthy assets will be handed off to the UNION.

Sigh. When lunatics run the asylum...


16 posted on 05/19/2009 12:35:20 PM PDT by bolobaby
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To: autumnraine

“Well, Obami, here’s another fine mess you’ve gotten me into!”


17 posted on 05/19/2009 12:35:51 PM PDT by RexBeach ("Do your duty in all things." Robert E. Lee)
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To: autumnraine

This can’t be a surprise, it’s very similar in the idea to the sale to Fiat in the Chrysler bankruptcy. However, where that one may well fly, this one is probably a bridge to far in terms of being used to get around the requirements of a reorganization plan.


18 posted on 05/19/2009 12:35:57 PM PDT by CatoRenasci (Ceterum Censeo Arabiam Esse Delendam -- Forsan et haec olim meminisse iuvabit)
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To: autumnraine; SumProVita; HardStarboard; BradyLS; Ernest_at_the_Beach; dervish; Twotone; ...

The list, ping


19 posted on 05/19/2009 12:36:09 PM PDT by Nachum (The complete Obama list at www.nachumllist.com)
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To: autumnraine
What happens to GM’s retired workers and their retirement benefits?

Does that become part of the national debt?

How will this relate to national healthcare?

Will there be any money left for new gps satellites, because the roads here in the Tidewater area aren't making sense to me yet...

20 posted on 05/19/2009 12:36:29 PM PDT by Voter62vb
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To: autumnraine

The soft tyranny we are all familiar with is rapidly becoming a true hard tyranny where more and more citizens have reason to fear their government.


21 posted on 05/19/2009 12:36:45 PM PDT by Jacquerie (Bind him down from mischief by the chains of the Constitution! - Thomas Jefferson)
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To: Pete
I firmly believe obey-me is moving as fast as possible to implement as much marxism as possible before the public catches on and before the 2010 elections.

With acorn and the marxism, all future "elections" will be as honest as chavez - leader for life unless we stand-up, comrades and our friends smith & wesson lead us to independence!

Wolverines!

22 posted on 05/19/2009 12:36:56 PM PDT by newfreep ("Liberalism is just Communism sold by the drink." - P.J. O'Rourke)
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To: autumnraine
The Peoples Car Factory!


23 posted on 05/19/2009 12:37:11 PM PDT by Bon mots
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To: Glenn
Ya’ know, I am becoming numb to all of the outrages.

I have to try and remember a time (not too long ago) when ALL of what is happening now was unthinkable.

24 posted on 05/19/2009 12:37:42 PM PDT by Never on my watch (If Obama isn't a tyrant, then tell me what a tyrant would do differently)
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To: TaxMe

We’re just lucky we have Mercury vehicles, a division of Ford.

As I understand it though, Ford may take government funds in the near future. We can see how well that worked out for GM and Chrysler. Ford executives would have to have their heads examined if they were to follow that model.

Banks, lending institutions... what’s next?


25 posted on 05/19/2009 12:38:57 PM PDT by DoughtyOne (Obama is mentally a child of ten. Just remember that when he makes statements and issues policy.)
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To: autumnraine

A little more like Germany or Italy from the 1930’s I think. This is a new form of ism Obamunism - Il Duce meets Marx. State ownership without the on-time trains.


26 posted on 05/19/2009 12:39:31 PM PDT by hometoroost (Torture? Would you rather do 5 years at Gitmo or 5 hours with the Muslims?)
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27 posted on 05/19/2009 12:39:52 PM PDT by evets (beer)
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To: Pete

And illegal to boot.


28 posted on 05/19/2009 12:40:21 PM PDT by freekitty (Give me back my conservative vote.)
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To: autumnraine
...also GM announced a Glorious Five Year Plan for a newly designed economic vehicle for every American:


29 posted on 05/19/2009 12:40:37 PM PDT by ElkGroveDan (Get rid of the dirty moderates. Get rid of them,)
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To: jpl

Obama can keep his cars!


30 posted on 05/19/2009 12:42:29 PM PDT by AngelesCrestHighway
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To: autumnraine

Aren’t there ANY laws being broken by this dictator?

If so, these companies should be fighting these dictates right up to the supreme court.

What is going on?


31 posted on 05/19/2009 12:42:57 PM PDT by Reagan69 (No Representation without Taxation !)
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To: autumnraine

Wow. I’ll be taking this link and putting it into every article bashing Rush Limbaugh for his, “I hope he fails,” comment that I can.

Rush predicted this and wanted it to fail. THAT’S why they are attempting to assassinate him. He’s a for-profit prophet.


32 posted on 05/19/2009 12:43:41 PM PDT by Winstons Julia
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To: jpl; Mrs. B.S. Roberts

That’s it!! From discharge from the Navy until now at 74, I’ve owned ONLY GM Oldsmobiles. (Except for a Ford Crown Vic I got from my brother-in-law for $12.50). Never even considered anything else.
That’s it!! Now I find something made in Tennessee, and I do not care where the company is from. So long as Americans are hired to put the thing together, I’m looking at it.
GM now stand for “Gone Manic”.
One consolation...the voter is getting what he voted for, but not quite what was expected.


33 posted on 05/19/2009 12:43:59 PM PDT by CaptainAmiigaf (NY Times: We print the news as it fits our views)
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To: epluribus_2

GM = Government Mafia


34 posted on 05/19/2009 12:44:00 PM PDT by silverleaf ("Never forget that everything Hitler did in Germany was legal ( Martin Luther King))
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To: TaxMe

“I have always bought GM cars in the past but will no longer do so. I suspect there are a lot of people who feel the way we do.”

Same here. From my first car at 17 y.o. to the present at 43 have had 12 Chevy’s. Not anymore! I’ve been looking for a reason to get that new Lexus.


35 posted on 05/19/2009 12:44:09 PM PDT by diverteach (http://www.slapobama.com/)
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To: Robe

The Nazis did this with Jewish assets. I guess the executives of these companies are in an analagous situation as the Jews - scapegoats for a government takeover.


36 posted on 05/19/2009 12:44:31 PM PDT by popdonnelly (The greatest crimes in history have been perpetrated by governments. You've been warned.)
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To: autumnraine

Socialism is here!


37 posted on 05/19/2009 12:44:43 PM PDT by b4its2late (There is always one more imbecile than you counted on.)
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To: autumnraine

Not how I would envision a bankrupty proceding. Bond holders get first dibs of course that would require contract law to be upheld.

AHAHAHAHAHAHAHAHAHHAHAHAHHAHAHA!


38 posted on 05/19/2009 12:44:53 PM PDT by Jimmy Valentine's brother
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To: Reagan69

Yeah. I think he was supposed to show he was a natural citizen of the USA.


39 posted on 05/19/2009 12:45:03 PM PDT by Voter62vb
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To: autumnraine

What happens to German imports? (Porsche, Benz, BMW)


40 posted on 05/19/2009 12:45:12 PM PDT by Reagan69 (No Representation without Taxation !)
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To: TaxMe
I have always bought GM cars in the past but will no longer do so. I suspect there are a lot of people who feel the way we do.

Same here. I was looking for another GM pickup since the hail destroyed mine, but will go with something else.

41 posted on 05/19/2009 12:45:44 PM PDT by Arrowhead1952 (It took almost 250 years to make the USA great and 30 days for "The Failure" BO to tear it down.)
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To: Sleeping Freeper

“Just wait until the end of Obama’s second term.... we’ll be worse off than Venezuela...”

Oh, easily. At least Venezuela is smart enough to keep producing oil. The government and the environmentalists don’t want us to do that here.


42 posted on 05/19/2009 12:46:11 PM PDT by popdonnelly (The greatest crimes in history have been perpetrated by governments. You've been warned.)
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To: autumnraine

So now GM is being broken up and sold to the government. So if we didn’t pass 0bama’s stimulus package in order to save GM, what would have been different?


43 posted on 05/19/2009 12:46:39 PM PDT by YankeeReb (Proverbs 29:2)
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To: autumnraine

Looks like that RATS will have another sinkhole to grab off sizeable contributions to various campaigns & pet projects, courtesy of the taxpayers.


44 posted on 05/19/2009 12:47:28 PM PDT by lilylangtree (Veni, Vidi, Vici)
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To: autumnraine

The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.


45 posted on 05/19/2009 12:47:36 PM PDT by b4its2late (There is always one more imbecile than you counted on.)
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To: The Great RJ

It’ll just be another money pit for taxpayers - a way to reward benefactors at the expense of the entire country.

They just should have gone bankrupt the usual way, dumped the unions, negotiated down debt and got on with business.


46 posted on 05/19/2009 12:47:49 PM PDT by Aria ( "The US republic will endure until Congress discovers it can bribe the public with the people's $.")
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To: autumnraine

“A Yugo in every pothole!”


47 posted on 05/19/2009 12:48:00 PM PDT by M203M4 (A rainbow-excreting government-cheese-pie-eating unicorn in every pot.)
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To: Reagan69

“Aren’t there ANY laws being broken by this dictator?

If so, these companies should be fighting these dictates right up to the supreme court.

What is going on?”

Odumbo has everybody that’s taken bailout money over a barrel.


48 posted on 05/19/2009 12:48:04 PM PDT by diverteach (http://www.slapobama.com/)
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To: Robe

If the board members are of the same quality as the people Obama has been able to attract to his regime, the new-GM stock will not sell very well.


49 posted on 05/19/2009 12:48:54 PM PDT by muawiyah
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To: autumnraine

It game over for GM and Chrysler, they are done for. There’s nothing left but the wasting away for them.

Ford stands a chance. Let’s see what Obama comes up with to kill them, too.

Hope and Change!


50 posted on 05/19/2009 12:48:56 PM PDT by AIM-54
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