Posted on 05/19/2009 12:29:20 PM PDT by autumnraine
Edited on 05/19/2009 2:07:32 PM PDT by Admin Moderator. [history]
I am speechless. Are we Russia yet?
NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday. The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source. The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims. GM has about $6 billion in secured debt, including a secured revolving credit and bank debt. The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans. In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.
If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.............
“These companies should be fighting these dictates right up to the supreme court.”
Two years ago they would have. Today, two of the three are owned by the government. The others, including the transplants, have been financially crippled and are to weak to fight. Plus, if you were a German or Japanese manufacturer, you know you can probably make passable junk that will meet the standards.
I really think this is intended to destroy Ford’s independence. The transplants will be nationalized or shut down.
We are headed for an economic disaster like this country has NEVER seen. The Depression was followed by victory in war and world economic domination for decades. That is OVER now, and it all happened from within.
You have forgotten the old Mafia dictum “an offer you can’t refuse”.
The brown shirts will have to force me by gunpoint to buy a car from Obama motors (GM chrysler) and even then I’ll say I’d rather be shot lol
This country has just jumped on the Crazy Train. Where and when does it stop?
My friend Justin suggests that since the Fed will own GM we change the name of GM to ‘Gennie Moe’ (a la Fredddie Mac, Fannie Mae, etc...)
I think it fits.
This is just so sad... Chevrolet has always been my favorite brand (except for Ford’s Old Mustangs). My parent had a ‘72-’74 Monte Carlo — such a beautiful car - bluish-silver, with blue leather on the back part of the roof/side, blue velvet interior with the woodgrain dash panel....
So sad that this is happening. Don’t even know what to say anymore...
I wonder what the count is now on how many jobs have been lost simply due to Obama’s meddling in NON-GOVERNMENT PRIVATE INDUSTRIES?
With the government taking over the banks, Ford may be forced by the government bank’s actions or inactions to accept direct government funds.......
What would Ford executives do if all their credit lines with the banks dried up?
Money being lent to GM amd Chrysler, but not Ford.....
Yeah, I’m afraid you are right. It’s coming and I’m afraid.
Yes, I hear ya.
What, The Kenyan wasn't answering his blackberry?
You never know. That could be what Ford is faced with.
This nation is being radically changed from the ground up.
No kidding. I was called paranoid and/or racist for voicing such concerns. I did think it would take longer than 150 days, though.
It means taxpayers will pay the 40 billion retooling for CAFE standards to be met.
In the case of Chrysler (and the same model will probably apply to GM) we will have a government business model 1) for selling cars people don't want, 2) making cars that aren't profitable, 3) with dealers that are harder to find (cuts dealerships by 50%), and 4) for which no one knows what they are selling because the advertising budget was cut in half. Sounds like the US Post Office.
Hell of a deal. It is about as good a business model as that for the proposed nationalized health care modeled on a system that will be broke in 5 or 6 years and that has an unfunded liability of 38 trillion dollars over the next 75 years.
Is this a great country or what?
this morning on fox news comments, they were talking about the CAFE standards speech obama had given. What is atonishing is it did not take Rahm and Axelrod more than a hour to send out dissenters to discredit the truth.
Point taken. I meant to illustrate that my NEXT car will be MADE IN THE USA and assembled by AMERICANS. I don’t really care what state. For that matter, what USA states do have assembly plants that do NOT make Obamamobiles? I’ll have to research it, I guess.
FWIW..I’m personally upset that I’ve promised myself to avoid ANYTHING made by UAW, INC.
You will be mandated to purchase ‘The Peoples Auto’.
I will never buy another GM car. NEVERRRRRRRRRRRRRRRRRRRRRRRR!!!
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