GM Bankruptcy: Gov't Ownership/Debt Forgiven

[Kathianne]

Why the hell not? It's our money, no worries. It's so much easier to 'negotiate with oneself...'

http://www.reuters.com/article/mergersNews/idUSN1943363120090519


CORRECTED - UPDATE 1-GM bankruptcy plan eyes quick sale to gov't
Tue May 19, 2009 2:02pm EDT
(Removes third paragraph with reference to not making any other payment)

By Chelsea Emery and Tom Hals

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N: Quote, Profile, Research, Stock Buzz) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims....

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy....

[Joe Steel]

Why the hell not? It's our money, no worries. It's so much easier to 'negotiate with oneself...'

http://www.reuters.com/article/mergersNews/idUSN1943363120090519

The "public option" for automobiles.

It's a GREAT idea!

[red states rule]

The "public option" for automobiles.

It's a GREAT idea!

I am sure Obama, Reid, Pelosi, Barney Frank, and John Kerry will design cars that the American people will fight over to buy :rolleyes:

Only liberals think they can run private companies better then private citizens - look at the great job they have done running Social Security, Medicare, Medicade, and the Post Office

[Binky]

I am sure Obama, Reid, Pelosi, Barney Frank, and John Kerry will design cars that the American people will fight over to buy :rolleyes:

Only liberals think they can run private companies better then private citizens - look at the great job they have done running Social Security, Medicare, Medicade, and the Post Office


The sad part is if the companies end up failing or moving out of country, as to who knows what they'd do, there would not be the manufacturing base there is now, leaving America with even less jobs to support the economy, much less those that can afford to purchase a new vehicle.

With the government stepping in, makes it all that much more iffy. The gov't can't even run itself, much less other businesses.

[Kathianne]

Yep, in their infinite wisdom, they are 'fixing the credit card companies', meaning some are dropping out and credit is tightening up even more. :rolleyes:

[Silver]

Will the pinheads ever realize that 15 billion dollars of their money(the taxpayers) was just given to the UAW union ?
and all they can do is make jokes and laugh about it....