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.............
Same here. I was looking for another GM pickup since the hail destroyed mine, but will go with something else.
“Just wait until the end of Obama’s second term.... we’ll be worse off than Venezuela...”
Oh, easily. At least Venezuela is smart enough to keep producing oil. The government and the environmentalists don’t want us to do that here.
So now GM is being broken up and sold to the government. So if we didn’t pass 0bama’s stimulus package in order to save GM, what would have been different?
Looks like that RATS will have another sinkhole to grab off sizeable contributions to various campaigns & pet projects, courtesy of the taxpayers.
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.
It’ll just be another money pit for taxpayers - a way to reward benefactors at the expense of the entire country.
They just should have gone bankrupt the usual way, dumped the unions, negotiated down debt and got on with business.
“A Yugo in every pothole!”
“Aren’t there ANY laws being broken by this dictator?
If so, these companies should be fighting these dictates right up to the supreme court.
What is going on?”
Odumbo has everybody that’s taken bailout money over a barrel.
If the board members are of the same quality as the people Obama has been able to attract to his regime, the new-GM stock will not sell very well.
It game over for GM and Chrysler, they are done for. There’s nothing left but the wasting away for them.
Ford stands a chance. Let’s see what Obama comes up with to kill them, too.
Hope and Change!
The plan is not to save GM but the labor unions.
The Big O is getting his fascism and socialism mixed up. If he wants to be a fascist, fine, but he needs to stay focused. Government ownership of the means of production is socialism, not fascism.
Is this like double taxation?
Say goodbye to the free market economy, and hello to the government telling you what you can do and not do. I will tell you one thing. GM and Chrysler are off my list.
Hey, I get my cars from Alabama.
LOL good one ...
And the sad thing is, most people in this country will care less.
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