Nationalizing GM

[alan1]

washingtonpost.com

Snips,

Once a symbol of capitalist might and U.S. industrial prowess, General Motors would be half owned by the Treasury under a new sweeping plan that would also shut down GM's Pontiac operations, lay off 21,000 workers and impose harsh terms on the company's bondholders.

He said the government "could have gotten nothing for something, or something for something" and that it insisted on a 50 percent stake to leave open the potential to recover some of the $18 billion the Treasury Department has already lent GM and the additional $9 billion that it would inject under the new plan.

Meanwhile, however, bondholders pose a major stumbling block to the restructuring. Under the proposed offering which GM filed with the Securities and Exchange Commission, investors holding $27.2 billion of GM bonds would swap those bonds for 10 percent of the equity shares of the restructured company. The United Auto Workers would get up to 39 percent of the company in return for half of the $20 billion GM owes to a health fund for retired workers. Current shareholders would get 1 percent of the new shares.

Now, isn't this interesting, the government put in $18 billion dollars and gets 50% of the company, the UAW has a $20 billion stake and gets 39% of the company, and the bond holders that have $27 billion invested (more than either other group) gets a measly 10% of the company.
Quite interesting how Mr Obama's administration can just declare themselves the controlling share of a company when they haven't invested the actual dollars to really own control.

 

[WillowTree]

washingtonpost.com

Snips,

Once a symbol of capitalist might and U.S. industrial prowess, General Motors would be half owned by the Treasury under a new sweeping plan that would also shut down GM's Pontiac operations, lay off 21,000 workers and impose harsh terms on the company's bondholders.

He said the government "could have gotten nothing for something, or something for something" and that it insisted on a 50 percent stake to leave open the potential to recover some of the $18 billion the Treasury Department has already lent GM and the additional $9 billion that it would inject under the new plan.

Meanwhile, however, bondholders pose a major stumbling block to the restructuring. Under the proposed offering which GM filed with the Securities and Exchange Commission, investors holding $27.2 billion of GM bonds would swap those bonds for 10 percent of the equity shares of the restructured company. The United Auto Workers would get up to 39 percent of the company in return for half of the $20 billion GM owes to a health fund for retired workers. Current shareholders would get 1 percent of the new shares.

Now, isn't this interesting, the government put in $18 billion dollars and gets 50% of the company, the UAW has a $20 billion stake and gets 39% of the company, and the bond holders that have $27 billion invested (more than either other group) gets a measly 10% of the company.
Quite interesting how Mr Obama's administration can just declare themselves the controlling share of a company when they haven't invested the actual dollars to really own control.

see what happens to the loyal lenders?.. aka bondholders? they get shat upon.. that's democwat justice for ya.. guarandamntee ya,, I'll never buy a government car.

 

[Vel]

washingtonpost.com

Snips,

Once a symbol of capitalist might and U.S. industrial prowess, General Motors would be half owned by the Treasury under a new sweeping plan that would also shut down GM's Pontiac operations, lay off 21,000 workers and impose harsh terms on the company's bondholders.

He said the government "could have gotten nothing for something, or something for something" and that it insisted on a 50 percent stake to leave open the potential to recover some of the $18 billion the Treasury Department has already lent GM and the additional $9 billion that it would inject under the new plan.

Meanwhile, however, bondholders pose a major stumbling block to the restructuring. Under the proposed offering which GM filed with the Securities and Exchange Commission, investors holding $27.2 billion of GM bonds would swap those bonds for 10 percent of the equity shares of the restructured company. The United Auto Workers would get up to 39 percent of the company in return for half of the $20 billion GM owes to a health fund for retired workers. Current shareholders would get 1 percent of the new shares.

Now, isn't this interesting, the government put in $18 billion dollars and gets 50% of the company, the UAW has a $20 billion stake and gets 39% of the company, and the bond holders that have $27 billion invested (more than either other group) gets a measly 10% of the company.
Quite interesting how Mr Obama's administration can just declare themselves the controlling share of a company when they haven't invested the actual dollars to really own control.

Have no fear..my Congressman's office says that "The congressman is carefully monitoring the situation." And in other news....pigs have learned to fly and have been spotted in the skies above D.C. ....

 

[007]

washingtonpost.com

Snips,

Once a symbol of capitalist might and U.S. industrial prowess, General Motors would be half owned by the Treasury under a new sweeping plan that would also shut down GM's Pontiac operations, lay off 21,000 workers and impose harsh terms on the company's bondholders.

He said the government "could have gotten nothing for something, or something for something" and that it insisted on a 50 percent stake to leave open the potential to recover some of the $18 billion the Treasury Department has already lent GM and the additional $9 billion that it would inject under the new plan.

Meanwhile, however, bondholders pose a major stumbling block to the restructuring. Under the proposed offering which GM filed with the Securities and Exchange Commission, investors holding $27.2 billion of GM bonds would swap those bonds for 10 percent of the equity shares of the restructured company. The United Auto Workers would get up to 39 percent of the company in return for half of the $20 billion GM owes to a health fund for retired workers. Current shareholders would get 1 percent of the new shares.

Now, isn't this interesting, the government put in $18 billion dollars and gets 50% of the company, the UAW has a $20 billion stake and gets 39% of the company, and the bond holders that have $27 billion invested (more than either other group) gets a measly 10% of the company.
Quite interesting how Mr Obama's administration can just declare themselves the controlling share of a company when they haven't invested the actual dollars to really own control.

This is how it works in oblahma's America.... he is king, and he can do as he damn well pleases, and you are expected to LIKE it.

 

[Indiana Oracle]

Would imagine the usual "Obama Theory of Business Influence" (OTOBI) will apply. To wit: Own control of enterprise, use as needed for political purposes, take no responsibility for decisions within enterprise, control decisions around the enterprise.