Report: GM Prepares for 'Surgical' Bankruptcy

Discussion in 'Current Events' started by WillowTree, Apr 13, 2009.

  1. WillowTree
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    WillowTree Diamond Member

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    The Treasury Department is directing General Motors to prepare for a bankruptcy filing by June 1, despite GM's assertion that it could still reorganize without such a filing, The New York Times reported unnamed sources as saying on Monday.

    Members of President Obama's automotive task force are said to have been in discussion with GM officials and its advisers in Detroit and Washington last week and are expected to continue this week.

    The White House-appointed autos task force has given GM 60 days to come up with a restructuring plan and it is trying to determine whether the automaker can be a viable company.

    Quoting sources who had been briefed on the GM plans, the Times said the goal was to prepare for a fast "surgical" bankruptcy.

    The automaker's strategy for a quick trip through bankruptcy court is likely to spark legal challenges from bondholders worried about getting steamrolled.

    Key members of an ad hoc committee representing GM bondholders have begun preparing arguments against the auto maker's bankruptcy plan, according to people familiar with the strategy.

    GM's leading bankruptcy plan would break the company into two parts: a good GM made up of strong assets, such as Chevrolet and the auto maker's Chinese operations; and a bad GM of underperforming assets and billions of dollars in obligations that essentially would be wound down in bankruptcy court.


    FOXNews.com - Report: GM Prepares for 'Surgical' Bankruptcy - Auto












    I've been doing a little observation exercise when I go out. Like just the other day I shopped at Target! In the parking lot only 1 of 15 cars was a GM product. Overwhelmingly the cars in the parking lot were Toyota, Nissan, Honda, Mitsibishu, and a couple of volvo.. I don't think GM can make a comeback.

    What do you see when you go out?
     
  2. Terry
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    Terry Shut the $%$ Up!

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    all that bailout money went to the Union, fire the CEO, then file bankrupt...very nice leadership from the POTUS /sarcasim.
     
  3. WillowTree
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    WillowTree Diamond Member

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    yep! and the people who lent good money (bondholders) to this lousy company are going to take a big big loss.. Figures! Don't count on taxppayers being treated any more fairly by the unions either. BUy Toyota.
     
  4. tigerbob
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    tigerbob Increasingly jaded.

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    Whereabouts do you live Willow? Brand ownership has something to do with living near salt water! If you're on or near the coast, expect to see more imports.
     
  5. Terry
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    Terry Shut the $%$ Up!

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    and GM will start a new company under another name...I bet the UNION gets a sweet deal! Now we see why the old CEO was fired by the POTUS for I'm sure he wouldn't go along with what their GRAND PLAN was for the Union and Company. To hell with the little people.

    Yeah there is real hope and I've always said with Obama's "Change" motto and that is, he isn't lying...he is giving you change, it's just not the change that most imagined. He proves that the old saying of "Becareful what you wish for" is so fucking true.

    Just par for the course these days. What's next?
     
  6. Terry
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    Terry Shut the $%$ Up!

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    Sad to say that we bought a Caddy CTS just before Christmas of this year. I like the car but don't like supporting the bad guys.
     
    Last edited: Apr 13, 2009
  7. WillowTree
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    WillowTree Diamond Member

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    if I got any nearer to the coast I'd be wet.
     
  8. tigerbob
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    tigerbob Increasingly jaded.

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    LOL! Well, that'd do it then. There has traditionally been a much higher percentage of imports in coastal areas. In the midwest / "heartland", it skews the other way.

    I live about 20 miles north of Detroit, where people who drive imports are considered unpatriotic. I have a Dodge RAM, but my wife drives a Toyota RAV 4. Someone keyed it just before Christmas - probably a patriot who was full of Christmas spirit!
     
  9. Old Rocks
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    Old Rocks Diamond Member

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    Nice leadership, indeed. Get rid of the deadwood, get some real accounting, then make the neccessary decisions on the basis of that accounting.
     
  10. WillowTree
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    WillowTree Diamond Member

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    More than likely it was a "tolerant" democwat! I'm surprised they have Toyota dealerships up there. :lol:
     

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