Democrats never let little issues like the law or constitution hamper their plans and deals.
Posted on 05/05/2009 9:06:48 PM PDT by 2ndDivisionVet
General Motors Corp on Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.
The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM, the company said.
The flood of new stock issuance that could be unleashed has been widely expected by analysts who have long warned that GM's shares could be worthless whether the company restructures out of court or in bankruptcy.
The debt-for-equity exchanges detailed in the filing with the Securities and Exchange Commission would leave GM's stock investors with just 1 percent of the equity in a restructured automaker, ending a long run when the Dow component was seen as a bellwether for the strength of the broader U.S. economy.
GM shares closed on Tuesday at $1.85 on the New York Stock Exchange. The stock would be worth just over 1 cent if the first phase of GM's restructuring moves forward as described.
Once GM has issued new shares to pay off its debt to the U.S. government, bondholders and its major union, it said it would then undertake a 1-for-100 reverse stock split.
Such a move would take the nominal value of the stock back to near where it had been before the flood of new shares. But in the process, GM's existing shareholders would see their stake in the 100-year-old automaker all but wiped out.
(Excerpt) Read more at globeinvestor.com ...
ha hA..That man standing next to his 1929 car looks exactly like he’s talking on a cell phone! Like W T F !
Yes, a 5 cylinder turbo diesel.
He already said so; besides none of the gasser W123s appear to have survived.
The country doesn’t recognize the Constitution anymore.
I didn’t get down to that post, before posting my reply. I’m surprised he found a Turbo Diesel, since usually they were just Diesel. Which just putt putt around. LOL!
Actually, most of the survivors appear to be the larger-engined 300D, with a large percentage being the turbo.
The 240D was so slow it’s unsafe on a modern US highway.
Obama is over-reaching so violently, he is risking a massive backlash against the left if the country wakes up. That is, IF the country wakes up. If not, then his power grab results in pure socialist tyranny coming from the national government (I can’t even call if federal anymore, as it ceased to be “federal” long ago.)
But Obama’s over-reaching is still very risky. The communist left has had massive success moving toward socialism through incrementalism. The frog is still soundly in the toasty pot. Obama is turning the fire on high and hoping the frog will stay in the pot. With our dumbed-down, ignorant, apathetic, immoral, entitlement-minded electorate, he just might be right. I guess it is worth a gamble to him.
I pray that his over-reaching creates a massive backlash.
My brother had one of those, quite probably that year, & has had 3 MBZ since then, a C280, a C350 and another C350. He always raves about the 300TD as one of the best cars he’s ever owned. I think he lent it to his ex-wide who ran it bone dry of oil and it utterly blew up.
Do they break? Astronomical parts costs?
Sixty billion shares?!!!!! Guaranteed worthlessness.
“I wonder who is gonna give Bank of A the 30 Billion to satisfy the Stress Test.”
Excellent point. Private equity should be scared.
Democrats never let little issues like the law or constitution hamper their plans and deals.
That chart really should have a line for the DOW averages.
It looks like both Ford and GM are rising and falling in unison with the market - until April.
But a couple of weeks into his term, she wrote him a scathing letter, basically saying “Daddy was right. I'm sorry I voted for you.”
On the run-up to the 100-day adoration, she asked me what I thought so far.
I finally answered her by sending a copy of your post. You have nailed it. Thank you for finding the words.
And *poor* GM, how many of us will buy their stock in the future? How many will buy their vehicles after this? I don’t think that many will because people don’t like getting cheated or dealing with a company that might cheat them.
New shares, old shares it’s still worthless.
This is insanity.
...Then we will hear it said that all is being done for social and economic justice...
His devotees will never brook any comparison with Mussolini, but oddly enough, they love having him compared to a murderous, immoral and cowardly ("Don't Shoot! I'm Che! I'm worth to you more alive than dead!") Marxist.
Go figure.
Those are great cars in the summer, at least. I know two people who have owned them. Any problems with fuel gelling in the winter, or have the fuel manufacturers gotten past that? That was always the reason I didn’t want one, even though you could get them cheap and they’re really solid otherwise.
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