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GM bankruptcy plan eyes quick sale to gov't

LTC8K6

LTC8K6

Lifer
Well, there goes about $15.4B of our money up in smoke as forgiven debt...

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

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.
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Originally posted by: techs
Originally posted by: Genx87
Hahahaha not a even a week after I predicted this.
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Yep. Let's gloat over how the Republicans destroyed our workers.
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You need to pull that head of yours out your ass. The democrats just bought a company with your money to give to a union that overwhelmingly donates to their election funds.

 
GM couldn't build the cars people wanted, but that will all change now that the government is running the show. We all know how government is good at making everyone happy all the time.
 
Now there's definitely not a chance that I will purchase a GM vehicle again, no matter what they build. I'm not buying anything from some government owned and run union mess.
 
Bottom line... Obama, et al are kissing the unions right in the southern pucker.

I voted for Obama... but let's not forget that he is a politico just like everyone else... he owe's people and entities just like every other congressmen, etc. in washington.
 
So wait...here is some money to help you out, a lot of money in fact...it wont do any good. You will have to pay it back. Hmm...well lets change the second part, you do not have to pay it back. And oh, we will let you have some more money. Need anything else? By the way...keep making those overpriced cars that no one is buying, we will give you more money to offset it. Would you like a key to our coffers? How about we let you have one of the printing presses for about a month. Print as much as you like...its all on the tax payers.


 
Wow, the gov doesn't get its money back. Like I didn't see that coming, along with everybody else.

What I want to understand is what kind of drug induced state of idiocy some people are in who are actually still BUYING GM stock. THE COMPANY IS GOING TO FILE FOR BANKRUPTCY. The CEO has been talking about it openly for weeks and people are still buying common shares.
Ha Ha! They are going to snare Delphi in the net so they can guarantee they'll get parts!
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I know a guy locally working for Delphi and they've been cutting hours back a lot (he is an engineer but gets these lay off periods of a week here and there). I suppose this may be good news for him.

It would actually be very interesting to see a government run car company. It would suck so horrendously that it would help set back the big-gov sycophants many years in their agenda.
 
No offense. But you guys are dumb as dirt.

Since the underfunded pensions themselves could cost taxpayers an estimated $23 billion thru the PBGC and the retiree medical care liability is underfunded to the tune of $34 billion what kind of 'deals' do you propose?

These unfunded liabilities were well over $70 billion several years ago so, yes, major concessions have already been made.

The last article I saw a few weeks ago put the UAW stake at 39% - except it will not be owned by them. The shares will be owned by a Voluntary Employee Benefits Trust, or VEBA.

I now return you to your OUTRAGE (and you may now fantasize with your conspiracies on how those big bad workers will make the VEBA toe the union line with threats about "sleeping with the fishes ..." )

 
Originally posted by: Skoorb
Wow, the gov doesn't get its money back. Like I didn't see that coming, along with everybody else.

What I want to understand is what kind of drug induced state of idiocy some people are in who are actually still BUYING GM stock. THE COMPANY IS GOING TO FILE FOR BANKRUPTCY. The CEO has been talking about it openly for weeks and people are still buying common shares.
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Excellent point on the stock, and I'm just as mystified. It closed at $1.27 today, up 7.63% and it rose yesterday as well. My best guess is that people are guessing GM actually won't file bankruptcy because if it does the stock is valueless. I think that's a sucker's bet, especially in light of how quickly the Chrysler bankruptcy is proceeding (the objecting creditors group collapsed, insiders are now predicting Chrysler will be out of bankruptcy as early as mid-June). The odds on a GM bankruptcy have to be 98%+.
 
Thank goodness, comrades, we will now be told what cars we wish to buy.

Can we file anti-trust claims against ourselves for owning 2 car companies?
 
Originally posted by: heyheybooboo
No offense. But you guys are dumb as dirt.

Since the underfunded pensions themselves could cost taxpayers an estimated $23 billion thru the PBGC and the retiree medical care liability is underfunded to the tune of $34 billion what kind of 'deals' do you propose?

These unfunded liabilities were well over $70 billion several years ago so, yes, major concessions have already been made.

The last article I saw a few weeks ago put the UAW stake at 39% - except it will not be owned by them. The shares will be owned by a Voluntary Employee Benefits Trust, or VEBA.

I now return you to your OUTRAGE (and you may now fantasize with your conspiracies on how those big bad workers will make the VEBA toe the union line with threats about "sleeping with the fishes ..." )
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So you are the smart guy, eh? You actually believe the gov't should even be involved in this UAW/GM mess eh? Now if you only remember, the gov't can't even run a whorehouse that it confiscated back in 1990! And went bankrupt in less than than 3 months! And you want this gov't to run an auto company when it can't even run a company with nothing but whores and booze in it? Geez!
 
I guess some of us are in for some "I told you so"s from the members here who saw this coming. I honestly didn't expect the government to let GM and Chrysler off the hook for these loans.

You have to consider, though, the feds have taken a large stake in both of these companies. Maybe they plan to get some of the money back by selling off their stakes later.
 
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