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Posted on 04/12/2009 10:06:20 PM PDT by Steelfish
‘Surgical’ Bankruptcy Possible for G.M.
By MICHELINE MAYNARD and MICHAEL J. de la MERCED
Published: April 12, 2009
DETROIT — The Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by a June 1 deadline, despite G.M.’s public contention that it could still reorganize outside court, people with knowledge of the plans said during the weekend.
The G.M. tower in Detroit. One possible plan would put “good” assets in a new company and leave the rest in the old company.
Members of President Obama’s automotive task force spent last week in meetings and on conference calls with G.M. officials and its advisers in Detroit and Washington. Those talks are expected to continue this week.
The goal is to prepare for a fast “surgical” bankruptcy, the people who had been briefed on the plans said. G.M., which has been granted $13.4 billion in federal aid, insists that a quick restructuring is necessary so its image and sales are not damaged permanently.
The preparations are aimed at assuring a G.M. bankruptcy filing is ready should the company be unable to reach agreement with bondholders to exchange roughly $28 billion in debt into equity in G.M. and with the United Automobile Workers union, which has balked at granting concessions without sacrifices from bondholders.
President Obama, who was elected with strong backing from labor, remained concerned about potential risk to G.M.’s pension plan and wants to avoid harming workers, these people said.
(Excerpt) Read more at nytimes.com ...
Surgical means save the unions at all costs.
Big labor payback coming forthwith.
You’re right. My puppy just had the same kind of surgery that GM’s management is going to get.
Why are Obama’s people talking to GM at all? The government should have never been involved in the first place. Obama is the president of the U.S., not CEO of any (or every) private enterprise.
Exactly.
Strange, ain't it, how quiet the UAW has been the past few months. Obviously they aren't too worried. They know the fix is in.
Good company, bad company? They already tried that by spinning off the parts suppliers. They need to close the bad company parts. Find new suppliers. The UAW needs to go with the “bad company”.
WTF?
Nice concept, pick and choose which parts of a company the government wants to go bankrupt...UAW must be pleased.
Now if they can just figure out a way to FORCE consumers to buy GM products , everything will be fine.
Now if they can just figure out a way to FORCE consumers to buy GM products , everything will be fine.
Think green and more tax breaks
This is all just a contrived way for Obama to force a car company to make cars the left deem to be “green.”
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Surgical bankruptcy should be applied to the post office and Amtrak.
Surgical should apply to the heads of the headcases in D.C. bankrupting us.
Socialist parasites destroying the host and socialist surgeons performing the autopsy. A new fascistein will be borne sucking the life from the rest of us.
“A new fascistein will be borne sucking the life from the rest of us.”
That’s Barackula’s job!
:)
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