Posted on 05/31/2009 8:51:38 PM PDT by Ernest_at_the_Beach
"For the better part of a century, the General Motors Corporation has been one of the most recognizable and largest businesses in the world," one senior U.S. official said in a prepared statement to reporters. "Today will rank as another historic day for the company -- the end of an old General Motors, and the beginning of a new one."
Describing the process as "painful but necessary," officials said GM will move ahead with plans to close 11 facilities will idle three more. Specific numbers of layoffs will come from GM, officials said.
The U.S. government will own 60% of equity in the new General Motors, with little or no control over day-to-day affairs. The U.S. government will receive approximately $8.8 billion in debt and preferred stock and will name some of the new company's board members.
(Excerpt) Read more at marketwatch.com ...
Good work, people. A real triumph of the will we’ve got going on.
I agree with Greta on this one.
If we own the company, we should all get company cars.
To paraphrase:
“The raping and pillaging will continue until prosperity returns.”
If I understand it right... the unions didn't concede anything... the government screwed the bond holders... how exactly do GM have a new beginning?
The government has incentivized the default of a company on its obligations, in order to carve it up and redistribute its assets according to its whims.
The new administration has wasted no time. Clearly radical heavyweights that advise it have a plan.
So, if we are getting $ 8.8 billion in new worthless company stock, that means we only have pissed away about $ 20 billion so far.
And now we get to finance another $ 30 billion with no guarantee of payback.
All done with NO congressional oversight, NO authority from the TARP legislation, and NO Constitutional authority.
the government is spending themselves into bankruptcy sooner than expected
they don’t have bond payments, this will give them a few more years, but long term, it doesn’t survive. This is simply a payoff to the union from the taxpayer, nothing more and nothing less.
Mr. Taxpayer, this is sound of the fascist Obama s#!tt!ng on your chest.
So bond holders really got screwed...
correction.....American Taxpayers (really) got Screwed. 
...d@mn, those 50+% voters
****************************EXCERPT**********************
Officials confirm $27 billion debt deal
The steering committee for a portion of GM creditors has confirmed that bondholders representing at least 54% of GM's unsecured debt have agreed to exchange their portion of the company's $27.1 billion unsecured paper for their pro-rata share of 10% of equity in the new GM, plus warrants for an additional 15% of the new company.
"The bankruptcy court process will be used to confirm this treatment for those bondholders and other unsecured creditors that failed to accept or did not participate in the offer that was accepted by the aforementioned majority," the U.S. officials said.
Having said that, I just wish we the taxpayers weren't left holding the bag for that union thug Gettlefinger and his enabler Obama.
This REALLY sux ...
My extended family has owned a sh*tload of GM stock for close to 100 years - thanks to my Great-Uncle.
He was an executive at New Departure Mfg (a GM subsidiary) in Bristol, CT and was also my Dad’s Godfather.
During the Depression, my Great-Uncle was able to keep our family, friends, and many citizens of Bristol employed (albeit ALL in rotating shifts) at New Departure.
Sure, it wasn’t full-time employment - but it was enough to keep food on the table for all ...
As a result, my Great-Uncle was rewarded by GM with a ton of stock.
When my Great-Uncle died, he willed his stock to my Dad (his Godson) as he had no children.
This stock has since been sometimes distributed to the family from time to time in order to pay for major items such as college educations ...
However, MOST of the stock has NEVER been sold - since it has had TREMENDOUS sentimental value to my family.
It represented the fact that GM (and my Great-Uncle) “saved” our family during the Depression. It also represented our faith in GM ...
Now, I suppose all that is left to do is to request paper stock certificates from our broker so that we can use them as back-up - in case we run out of T.P.
Man that hurts..
I beg to differ with you on that. I've owned GM vehicles for about 40 years now, and have had nothing but great service from all of them. The ones I've bought over the last 15 years have been of superb quality.
I agree. I have driven GM cars for more yearss than I remember. amd never a lemon in the bunch. Obama motors will some day realize that the purpose is to build cars that people want to buy. Obamamobiles, I think not, Seems like only yesterday when the Dem trustbusters were after GM.
barbra ann
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