Skip to comments.GM BANKRUPTCY PLAN CALLS FOR QUICK SALE TO GOV'T
Posted on 05/19/2009 12:29:20 PM PDT by autumnraineEdited 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.............
No, Russia has learned and backed away from Socialism.
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.
Best of luck to Government Motors. I’ll move to Russia before I buy a car from Hussein Obama.
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.
If no /sarc, how has Russia shied away from socialism? (Honest question)
Link to article now up:
“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
You mean the taxpayers would be left holding the bag?
Just wait until the end of Obama’s second term.... we’ll be worse off than Venezuela...
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.
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.
>>I am speechless. Are we Russia yet?<<
No we’re aiming to be the people Russia makes fun of for not being capitalist enough.
Worse. Healthy assets will be handed off to the UNION.
Sigh. When lunatics run the asylum...
“Well, Obami, here’s another fine mess you’ve gotten me into!”
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.
The list, ping
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...