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 ...
Rahm Emanuel and Larry Sommers are plenty smart enough to come up with this - and more.
“Obama Favors Bankruptcy for GM, Chrysler”
Makes sense. GM and Chrysler go bankrupt and get taken over by the workers (labor unions). Obammy sends 50 billion in handouts. Union workers (now management) give themselves huge raises while making a token # of cars. After the money is all gone (redistributed to Union thugs), the companies fold for good.
In any event, ya think Buicks will now be known as Baracks?
You mean after Obama and the democraps stole billions of dollars for them?
Yeah, but the 20-100 billion taxpayer dollars aren’t being burnt in a big field somewhere. They are going to UAW and Democrat connected business.
It is important for you to realize that the plan, then bankruptcy, then reorganization, bla bla bla can go on for years, reaping hundreds of billions of tax dollars from stupid sheeple.
Even after GM goes kaput, then there is the whole ‘save Michigan, Ohio’ boondoggle that can go on for another few decades.
None of this has anything to do with cars, electricity, GM. It’s about the M-O-N-E-Y and keeping it flowing to the UAW, Democrats and favored hacks, business.
Legally, it is only feasible to do in bankruptcy court.
Otherwise, you’re right, it would be illegal, violating a bunch of bond covenants, shareholder approval requirement, collective bargaining agreements, and might well constitute a fraudulent conveyance to boot.
For once I agree with him, although somehow I doubt I’ll like the details.
Did anyone catch that an AIG director is on Obama’s TAX TASK FORCE? Union also? I see major conflicts of interest if AIG and unions will tell Obama who to tax!!!!!
“For all of the “Republican” apologists for 0bama”
I dont believe there are any left, are there?
“We survived Clinton and Carter, we can survive 0bama.” if it makes your delusion easier to live with.”
Well, the statement is true. We can survive Obama, just as I survived an intestinal bacteria that I picked up in India that had me evacuating both ends of the intestinal tract at once. I think the pain level will be comparable. OTOH, the bug subsided in 3 days, and we have 4 years of Obama.
“So I guess that we the taxpayers just lost the billions we “invested” in the past months...?”
The billions went down a rathole to fund UAW workers so they wouldnt have to make the concessions that would be inevitable in a CH-11 bankruptcy.
Again, this was never a GM bailout, its a UAW bailout.
“...we have 4 years of Obama.”
OK, and in 4 years does all of the freedom he is/will be stealing from us get returned? Automatically?
How about all of my money he and his hard-left will take from us? Immediately deposited into our accounts?
How about the welfare, socialized medicine, nationalization of God knows what next. All undone?
Even the Conservatives, the “defenders of the constitution” won’t be able to pull the masses off of that nipple without the entitled revolting.
Unbelievable.
This is pure conjecture on my part, but I always look for the simplest explanation for seemingly complicated things. IMO Wagoner refused to and/or could not come up with a plan that protected the union.
If the bail was designed to do anything it was designed to protect unions (including teachers)and other Onada supporters. For example, outfits like ACORN.
So Wagoner is ousted. Although some people are concluding The Messaiah will let GM and Crysler go the bankruptcy route, I’m not sure that is a forgone conclusion at this point. If the automakers take the bankruptcy route the union is vulnerable to being made to make wage and benefit concessions. It will be interesting to see what happens if The Marxist Onada, in the end, cannot protect the union.
Of course, bankruptcy was the right way to go right from the git go. This what happens when politicians are allowed to pretend they are business people.
I suspect this will be one of the better read memoirs!
The Putin plan has some merit - split the country into 6 parts.
GM, Chrysler Get Ultimatum From Obama on Turnaround
CNBC | 4-30-09 | Staff
Posted on 03/30/2009 2:44:57 PM PDT by Anti-Bubba182
http://www.freerepublic.com/focus/f-news/2218405/posts
The President mocks our Constitution and values
Union Leader | March 30, 2009 | Clifton La Bree
Posted on 03/30/2009 6:22:45 AM PDT by Kaslin
http://www.freerepublic.com/focus/f-news/2218014/posts
A Milli Vanilli President
Newsmax | March 30, 2009 | James Hirsen
Posted on 03/30/2009 7:46:15 AM PDT by holy joe
http://www.freerepublic.com/focus/f-news/2218070/posts
Looks like Obama the Socialist isn’t Communist enough for Pelosi the Communist.
And I favor 0be’s impeachment.
Show of force; they should have been allowed or forced into Bankruptcy years ago.
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