[Big_Monkey]

"Instead, those obligations would be transferred to an "old GM," made up of less-desirable brands like Hummer and Saturn, and underperforming plants and other assets.

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.

[SirJohnBarleycorn]

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.