Posted on 03/30/2009 12:53:01 PM PDT by Big_Monkey
WASHINGTON— The Obama's administration's leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.
The move would in essence split both companies into their "good" and "bad" components. The government would like to see the "good" GM to be a standalone company, according to an administration official. The "good" Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said.
GM and Chrysler have had bankruptcy attorneys devising plans for such a
move in recent months.
President Barack Obama's task force has told both companies that the administration prefers this route as a way to reorganize the two auto makers, rather than the prolonged out-of-court process that has thus far frustrated administration officials.
GM looks increasingly like it will be forced into filing for bankruptcy protection, sometime in mid-to-late May, in a plan where the automaker breaks into two companies, the surviving entity a "new GM" that maintains key brands such as Chevy and Cadillac and some international units, say several people familiar with the situation.
(Excerpt) Read more at online.wsj.com ...
There is no way BO is going to screw the union people. This is a PR move. He won’t let the union contracts go down. No way. Just wait and see.
No $hit Barry. Most of the freepers figured this out quite a while back. Back when you said bankruptcy is not an option. Do what every other business in America do, when in trouble do a bankruptcy filing so you can re-work your union contracts, work out a settlement with your creditors etc...
http://www.redstate.com/blackhedd/2009/03/30/general-motors-hurtles-toward-bankruptcy/
General Motors Hurtles Toward Bankruptcy
And then there’s the UAW. They are in fact the beginning and the end of the government’s interest in General Motors. They will come out of this as the big winners. Never mind that the average automaker earns half again as much in wages and benefits as the average American. UAW boss Ron Gettelfinger, with CEO Obama at his side, will announce “deep, painful concessions” to be suffered by the union membership.
But don’t believe a word of it. The union will come out of this nearly untouched, with their exorbitant compensation packages basically intact, and minor changes in work and seniority rules. And you the taxpayers will be paying for every penny of this, because they won’t be earning all that pay in the market. GM in bankruptcy will force every one of its stakeholders to take major pain except the UAW membership.
I've read the whole article twice now, and that's what I come away with - The administration is looking for a way to dump retire health care (paving the way for socialized medicine) and they want to screw the bondholders. No mention of any additional UAW concessions. And in fact, they state that UAW may walk away with an equity position in the company.
It seems like a pre-packaged bankruptcy specifically designed to protect the UAW workers.
Tax payers could have saved a bunch of billions, and been spared a lot of fascist bull, if we would have let this happen in the first place. When we needed to have a moratorium on capital gains taxes and corporate taxes, combined with energetic energy exploration and development, we got stimulus stupidity and Fascism. Our Hitleresque regime grows bolder each day, and America dies. Is this what the “hope” was all about?
I have a question for the Obama-bucks people: if they can’t find enough Democrats to staff Bilderberger-Turbo-Taxer Geithner, how in the world do they think they can staff all these companies that are going to be taken over by the feds.
I know. I know. Obama says he’s not taking over GM. He just so happened to demand a resignation. And that’s not “firing” the CEO? Obama can call it whatever he wants, but demanding someone’s resignation is the same as firing somebody.
I hope Waggoner writes his book just in time for the next election. There’s going to be one huge backlash come November 2010.
I also hope Waggoner heads up Obama’s re-election campaign. There will be hundreds of thousands who are going to be very interested in reading his book so I hope Waggoner gets to work on it right away. It ought to be a good one!
Wonder if any Democrat is going to give the money back to any of these outfits, including the unions, and AIG, and other biggies who donated to their campaign funds.
Talk about biting the hand that feeds you!
Narcissistic people sometimes can’t do what needs doin’ unless it’s their idea completely. They act like they didn’t hear them, then turn around and steal the ideas. Maybe he’s just that intellectually inferior/immature?
My husband and I were talking about whether he’s a leftist, evil tyrant who knows exactly what he’s doing, or just a bumbling idiot with no concept whatsoever of the ramifications for all this. I honestly can’t decide which. Hubby says choice A.
But, But, But.....They’re too big to fail!! Who will buy a car from a bankrupt company? We will lose millions of jobs!
No surprise that Pelosi and Obama are not talking to each other. They live on parallel planes.
For all of the “Republican” apologists for 0bama: I hope you enjoy your tax bill as much as I hope the left enjoys theirs.
Oh, and don’t mind the diminished liberty, at least you won’t be alone in your suffering by the time these guys are finished with us.
Keep saying: “It ain’t THAT bad.” or “We survived Clinton and Carter, we can survive 0bama.” if it makes your delusion easier to live with.
Americans, what will it take for you to see that these are dangerous people stripping you of your paycheck and your freedom?
How much more evidence do you need?
I know you’re not a dumb people. I know you’re not blind. But you certainly aren’t seeing the real danger presented by a socialist/communist government being raised up in broad daylight—in the Unites States of America!
Land of the FREE, home of the BRAVE. Remember that?
We’re neither free or brave at present.
What’s wrong with you? I just don’t get this.
Years from now you can think back on “What if we had done something to fight them back then?” or “What was I thinking?”
Then you can feign a smile to your grandchildren and swallow hard the thought that things might have been different for them, if only...
Obama didn't ask Congress about ousting Wagoner
It wasn't for reasons of the company or workers....
I have a choice C:
He’s an empty suit, completely incapable of leading on his own. He hasn’t vetoed anything coming out of Congress and he cannot function without a teleprompter. Someone else is pulling the strings on this puppet. Pelosi, Emanuel, Soros...not sure.
Watch for a debt for equity deal between GM and the UAW in which the “Workers of the World” acquire controlling interest in the means of production in exchange for forgiveness of the pension debts.
Obama will not approve a plan without the UAW's blessing. Look for Uncle Sugar to assume or guarantee the retiree benefits in the "old GM." Taxpayers, bohica.
Until the unions demand that the democrats pick up their pensions.....
LOL!!! I can see a serious restructuring for the U. S. Goobermint in the near future and firing all those in Congress who spend taxpayers’ money like drunken men hooked on cocaine.
How would any of this be legal? Barry's plan is to divide the company into good and bad pieces. Presumably, the UAW gets an equity stake in the good piece, but the bond and stockholders get the big crap sandwich full of the bad piece.
To me (and I'm only an investor, not an attorney), it would seem this would be tied up in civil litigation for decades.
I have owned Chevy’s my entire life. You can bet that I will never buy another GM product EVER! I will sell my current truck immediately and purchase a Ford. Weather Wagoner deserved to go is not the issue. The government has decided to take control of one company and tell another it has to merge with a foreign firm. GM will now stand for “Government Made” instead of General Motors. What surprises me more than anything in this mess is the unflinching support from the Unions for a Socialist style government. Well what goes around comes around and they will end up being on the receiving end one day.
Under a normal bankruptcy, the unions would be S*itoutaluck.
Nam Vet
Obama,is not smart enough to come up with this on his own, who is behind him?
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