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GM More Open to Bankruptcy
Wall Street Journal ^ | 3/6/09 | JOHN D. STOLL and NEIL KING JR.

Posted on 03/05/2009 6:10:29 PM PST by jimbo123

Top General Motors Corp. executives are more open to a speedy bankruptcy reorganization financed by the government, pushing aside earlier concern that such a move would scare away so many customers the company wouldn't survive, said a person familiar with the matter.

While the company still wants to avoid bankruptcy, the new view represents a reversal from GM's position late last year, when it sought a federal bailout. The change in thinking, combined with the disclosure Thursday that GM's auditor has raised "substantial doubt" about the car maker's ability to keep going, appears to move GM closer to the possibility it will file for reorganization.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; News/Current Events; US: Michigan
KEYWORDS: automakers; bailout; bankruptcy; chapter11; generalmotors; gm; michigan
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1 posted on 03/05/2009 6:10:29 PM PST by jimbo123
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To: jimbo123

Sorry to hear that it is heading toward this. It’s just sad.


2 posted on 03/05/2009 6:13:54 PM PST by madison10
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To: jimbo123

Bout time. If they don’t get out from under the union contracts they’ll never survive.


3 posted on 03/05/2009 6:14:12 PM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: jimbo123

Sounds like good news, but who knows these days. If it means the UAW has to restructure the retiree’s health plan, I think it is a good thing.


4 posted on 03/05/2009 6:14:52 PM PST by REPANDPROUDOFIT
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To: REPANDPROUDOFIT

Agreed. Let the fools who voted for government controlled medicine face it with the rest of us.


5 posted on 03/05/2009 6:16:40 PM PST by Trod Upon (Mao was a community organizer, too.)
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To: REPANDPROUDOFIT
It appears all of us are going to have our health care plans "restructured".

For me, that's not a good thing.

6 posted on 03/05/2009 6:17:36 PM PST by spectre (sw )(Congress lied...the economy died)
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To: jimbo123

re: bankruptcy reorganization financed by the government

I confused. Why is there a need for more tax money, just to go bankrupt. Isn’t that the whole idea behind bankruptcy, you have no way to pay your bills?

So the billions we’ve poured into them so far is just our, the taxpayer’s, tough luck?


7 posted on 03/05/2009 6:17:56 PM PST by jwparkerjr (God Bless America!)
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To: madison10
Socialism never pays.


8 posted on 03/05/2009 6:22:40 PM PST by jimbo123
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To: REPANDPROUDOFIT
If it means the UAW has to restructure the retiree’s health plan, I think it is a good thing.

Maybe Dems can bail them out using your tax dollars... Don't you want them to have the best health care possible? /s

9 posted on 03/05/2009 6:28:26 PM PST by GOPJ (People who can't use the new WH phone system are trying to redesign half the US economy - Brooks)
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To: jimbo123

Gee.... couldn’t these clowns have been open to bankruptcy BEFORE our corrupt politicians gave them billions of our damn dollars???


10 posted on 03/05/2009 6:30:35 PM PST by Gator113 (For America to survive, Obama must fail.....)
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To: jimbo123

Do they have any choice? When the money runs out and the handouts stop, can they just magically say “We’re not going to go bankrupt”?


11 posted on 03/05/2009 6:34:13 PM PST by CriticalJ
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To: jimbo123

Good! DO IT! This is the key to their survival, break the damn union and come out a competitive company.

Great news, GM do it.


12 posted on 03/05/2009 6:36:28 PM PST by bigbob (-)
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To: jimbo123

thanks for all the help mr gettlefinger.


13 posted on 03/05/2009 6:41:28 PM PST by mrmargaritaville
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To: bigbob

SCREW GM............ I wouldn’t give these BUMS one thin dime!

I am going to throw a party when they slide under the Horizon.

Good Riddence to a ship of FOOLS! They deserve everything they get!

Let them go down Hard and stay down forever!


14 posted on 03/05/2009 6:43:53 PM PST by EnglishOnly (Fight all out to win OR get out now.)
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To: jimbo123
Sell GM to Hyundai! They know how to make and SELL cars.
15 posted on 03/05/2009 6:52:59 PM PST by jaz.357 (Ars longa, Vita brevis)
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To: jimbo123

duh, every company the Obama administration has helped has gotten into MORE problems.


16 posted on 03/05/2009 6:55:48 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: madison10

This is exactly what’s needed. This is the only way to get out from the massive pile of union benefits that GM is laboring under. They’re spending $1 billion a year on salaries and benefits for laid-off workers. Some of these people were “laid off” over a decade ago, but their compensation package for not working is so huge, that few of them could see clear to leave for an actual job, even when the job market was booming.


17 posted on 03/05/2009 6:56:07 PM PST by GovernmentShrinker
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To: longtermmemmory

GM has been driving itself into an ever-deeper hole for decades. Any effect President Obama has had is merely a drop in the bucket.


18 posted on 03/05/2009 6:57:50 PM PST by GovernmentShrinker
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To: jwparkerjr

it is called “debtor in posession financing” Essentially it is a line of credit to allow a company in CH 11 to operate and rebuild under the supervision of the Bankruptcy court.

GM is so big and so high risk that no private money is apparently available.


19 posted on 03/05/2009 7:00:00 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: GovernmentShrinker

VERY true, but it is clear Obama is the enemy of business and will not be an asset to the american ecconomy.


20 posted on 03/05/2009 7:02:23 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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