GM Wants to Default on Bad Assets; Form New Company With Good Assets
Saturday, February 14, 2009 20:47
GM is considering chapter 11 bankruptcy and forming new company.
WSJ reports “”One plan includes a Chapter 11 filing that would assemble all of GM’s viable assets, including some U.S. brands and international operations, into a new company.”
The plan would allow the new company to keep the viable assets while liquidating the undesirable assets under the protection of bankruptcy court. This would pave the way for the company to “Re-negotiate” payments to bondholders, and contracts with employees and unions.
Does anyone know of a way that we can file for bankruptcy on our debt while keeping our “Viable” assets?
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GrimFandango says:
February 14th, 2009 at 11:26 pm
This is not the answer.
After GM ditches their debt, financially destroying their creditors in the process, they will emerge as a new company with the same old cars that people won’t buy in sufficient quantities to prevent the very same debt cycle from reoccurring.
I say, off with their heads.
Prinzowhales says:
February 15th, 2009 at 7:43 am
Excellent! The UAW’s membership is getting exactly what they deserve for betraying the Industrial Unionism for the sake of craft unionism and supporting Obama and his financier pay masters. Let them rot! “Smoke and Mirrors” wrote today that an uncle of his said that “Those who cannot hear must feel,” and these people of the “I’ve-got-mine” brand of unionism who split the labor movement and settled in with the Democratic Party shills will finally have the wolf at their door.
Prinzowhales says:
February 15th, 2009 at 7:49 am
Flint and Detroit Michigan…the barren wasteland of Big Steel and Big Steel’s pet union are ample testimony to the kind of society that finance and profit driven enterprise bring to the world…slag heaps a disintegrating society and ruined people…. General Motors could have been producing and selling electtric cars over ten years ago…but they opted to destroy their model and build SUVs…while the obliging swine in Washington provided green stamps for those who bought them–tax incentives for businesses–that was quite an energy independence strategy. I remember the 1972 Vega…and I will gladly dance on GM’s grave!
jayjay says:
February 15th, 2009 at 9:34 am
72 Vega. Wow I used to have one of those. If you could keep oil in it it would run, but what a piece of crap. I too would dance on there grave.
Masdar says:
February 15th, 2009 at 9:45 am
Any thinking person would conclude that Unions are not the cause of the demise of the auto industry and if those persons were astute in their analysis they would conclude that the management and direction of these companies were under the control of management thus will be where the blame lies. The products that these companies produced were simply not in demand and haven’t been in demand for years as evident by the declining market share. Further trade imbalances created by government international trade policies and practices created an other barrier to a drop in sales. It is estimated that the labor cost on average to produce a vehicle amounts to about 7% of the overall cost of production.
Dead_in_Dayton says:
February 15th, 2009 at 9:58 am
I live in Dayton, Ohio which used be be called a GM Town. A half dozen manufacturing facilities employing ten of thousands and many suppliers employing tens of thousands more. Virtually all gone now. The region talks about re-vitalizing industry post-GM but it is an empty pipe-dream. I guess that all those abandoned buildings and the suppliers they still owe would be considered part of the bad assets they want to dispose of. Maybe we can use the buildings to house all of the homeless and soon-to-be-homeless unemployed folks.
chartingstocks1 says:
February 15th, 2009 at 12:36 pm
i think its time for a revolution!