See the USSA in a Chavazrolet, before Obama gives it all away!
Posted on 05/06/2009 12:32:51 PM PDT by Jim Robinson
GM, Harrah's and other deeply-indebted companies want bondholders to take the pain.
It isn’t enough that bondholders saw the value of their investments plummet over the past year. A chorus of executives, private equity investors and even President Obama are asking them to sacrifice so that companies such as General Motors, Harrah’s Entertainment and Unisys can survive.
While public attention focused on the effort by General Motors ( GM - news - people ) and the Obama Administration's attempts to get bondholders to swap debt for a 10% stake in GM over recent weeks, manufacturer Rexnord and Hexion Specialty Chemicals came to agreements with their bond owners to wipe out some of their debts. Faced with declining revenues more debt-heavy companies have turned to their creditors for a way out this year. The rating agency Standard & Poor’s counts 28 such cases of borrowers agreeing to such debt exchanges so far, up from 15 last year and 4 in 2007.
(Excerpt) Read more at forbes.com ...
Nobody other than the Fed will ever loan GM a dime.
Will the Obama admin. force us now to buy GM or Chrysler products by not allowing foreign imports or buying Fords?
Yup. The president attempts to sell the bondholders on taking a huge haircut while converting their debt for equity and all the while he's also planning on wiping out the shareholders by selling billions of new shares:
http://www.freerepublic.com/focus/f-news/2245096/posts
The corrupt SOB should see prison time for this triple scalping. And he would if he was a private sector exec under scrutiny of the SEC.
See the USSA in a Chavazrolet, before Obama gives it all away!
What better way to shut down capitalism than slaughter those that invested to help a business. Why invest in that world? If you are successful we will tax you double and if not, you’ll get screwed double.
I suspect the corporate bond market will be dead for a long time.
Who would buy corporate bonds for the foreseeable future when they know a company can wiggle out of the contract?
We’re screwed. We are so screwed.
*******Will the Obama admin. force us now to buy GM or Chrysler products by not allowing foreign imports or buying Fords?**********
I have been a GM owner for 45 years, The only way I would buy another GM product is to be forced to.
Dont’cha know there’s a new regime running things these days... they’re just looking out for our ‘common good’.. ignore the brown shirts. ‘=)
I’m sadly with you. Learned to drive on my Dad’s ‘49 Olds 88 and have driven and owned NOTHING but an OLDS since. GM cars have treated me wonderfully all the way to the ‘92 Olds wagon I still drive.
It will take a VERY large gun, aimed at a sensitive part of me before I will even CONSIDER another GM product. I just scratched Chrysler off the possible list and am left with Ford. Of course, there are a LOT of AMERICAN made cars to choose from...just with ‘foreign’ names.
The Tarp banks will be required to loan money to GM. That’s the way it works.
And any agreements, contracts, or settlements which were inked under duress are not binding under current law and any so entered into before the judge rules will be overturned or tossed out.
Buying a Ford now makes no difference as it still sends money to the UAW union.
Never will I ever again buy any car/truck made by the UAW union.
I drive an Acura ... love it ...
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