WillowTree
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- Sep 15, 2008
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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?
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?
