:fail:
After reading some more, it looking like GM is going to offer a debt swap and if the bond holders don’t take it then a BK is in order.
Surprise!
I’m sure everyone has heard:
the plan is to shut 15 of GM’s 21 North American car and truck assembly plants, most of them in the USA.
Union workers laid off will get about 72% of pay from state unemployment, plus “supplemental unemployment benefits,” a GM-paid union benefit.
http://www.usatoday.com/money/autos/2009-04-22-gm-plant-shutdown_N.htm
So, pretty much GM is setting up and getting ready for a bankruptcy filing.
Only for 9 weeks, not permanently…
Yeah, sorry about the crappy copy and pasting, but the linked article gives some good details.
How much you want to bet GM is next week too?
I just ordered a new truck a week and a half ago.they better build it before they go wandering off!!!
it’s staggered so it’s not all at once…
GM WILL BE FINE…THE WORLD IS NOT ENDING.
Ah the beginning of the beginning…
General Motors may announce early next week that its Pontiac brand will be eliminated, said a source familiar with the company’s plans. The announcement will be made as part of an updated viability plan to the U.S. auto task force, the source said.
A second source indicated earlier this week that GM was considering phasing out the brand instead of sticking with the current plan to have it continue as a niche marque.
GM, surviving with $15.4 billion in U.S. government loans, had planned to keep Pontiac along with mainstream brands Buick, GMC, Chevrolet and Cadillac. Saturn, Hummer and Saab are up for sale.
Reports that GM is contemplating killing Pontiac surfaced today in Australia, where GM builds the Pontiac G8 sedan.
just keep the G8 somehow…call it a chevy commodore if they have to.
At least now we know Pontiac’s gone.
GM now says it may import cars from China.
http://www.buffalonews.com/260/story/670561.html
That would be awesome maybe we could buy them right at WalMart!
http://www.bloomberg.com/apps/news?pid=20601087&refer=top_news&sid=aCdKhRIRlKYE
Its finally happened. What an incredible waste of tax payer dollars.
Didn’t we just print another $5 billion for them a few days ago?:picard:
while not confirming GM’s intentions or a possible bankruptcy venue, said any court restructuring would be quick.
Where did it say GM announced anything.
I mean everyone knew June 1 is the date since they owe the bondholder a billion cash on that date, but GM still hasn’t announced anything official from what I have seen.
5 news trucks out front today, but they were there yesterday as well.
I will put a NYspeed sucks sign up in my window. Just look for it on in the left tower
The Obama administration plans to inject $30 billion into General Motors on top of the $19.4 billion it has already lent as part of a sweetened offer to bondholders, senior administration officials said today.
A GM Chapter 11 will happen. They can’t afford to ditch the dealers they wanted to without it (or perhaps an extra couple billion or so otherwise).
Arguably, this is way late, but now everyone can claim something
- Obama can claim he was fighting for jobs, but “acted tough” towards the automakers
- Automakers can claim that they were “forced into it”, including getting concessions
- The UAW gets their stake of the company
- Major unsecured debt holders can get some $$$ back - whether it’s part of “new GM” or AIG CDS, who knows. Arguably, it’s worse than Chapter 7 liquidation, but better than nothing.
Of course, it makes me wonder who will pay for GM’s CAFE fines if it doesn’t “make the grade” in 2016 - especially if the government owns 72.5% of the company. And I’m not sure the government would get out that fast… the last “government controlled bankruptcy” of a major American company was with Conrail - and that was formed in 1976, with the first profits in 1981, and eventual government divestment IPO in 1987.