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  1. #1
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    GM considering Chapter 11 filing, creating new company

    GM considering Chapter 11 filing, new company-WSJ
    REUTERS

    CHICAGO (Reuters) - General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

    "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 newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

    Citing "people familiar with the matter," the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

    GM declined to comment, the story said.

    General Motors and Chrysler LLC face a Tuesday deadline to file restructuring plans to the government in exchange for receiving $17.4 billion in federal loans.

    Automakers have struggled as U.S. auto sales have tumbled amid a recessionary economy. U.S. auto sales in January tumbled to a 27-year low.

    GM has been in talks with bondholders and the United Auto Workers union to get an agreement on a restructuring that would wipe out about $28 billion in debt for the auto maker, sources have told Reuters. However, it appears unlikely a deal could be reached by the Tuesday deadline, they said.

    GM has already announced plans to cut 10,000 salaried workers worldwide, or 14 percent of its staff, impose pay cuts for most remaining white-collar U.S. workers and has offered buyouts to its 62,000 U.S. workers represented by the UAW.

    In addition, it is trying to sell its Hummer SUV and Swedish Saab brands and is reviewing the status of its Saturn brand. (Editing by Eric Walsh)

    Source: Reuters North American News Service
    TPM News
    Когда́ де́ньги говоря́т, тогда́ пра́вда молчи́т

  2. #2
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    Chaper 11 is the old & busted way to get a government bailout. We need the new hotness - Just give us billions!!

  3. #3
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    GM's trying to force Congress's hand.

    If it wasn't for the fact that it would lead to a chain reaction of unemployment, I'd say we should call their bluff.

    But as it is, the better option would be for the government to buy up GM capital.
    Member of the Owlluminati

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  4. #4
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    Looks like they gt another loan

    $4 Billion from the governmnet.

  5. #5
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    Ignore the above post^


    take a look at this crap...

    http://news.yahoo.com/s/ap/20090217/..._ge/gm_bailout
    GM seeks up to $30B in aid, to cut 47,000 jobs

    DETROIT General Motors Corp., presenting a dire outlook for the future, said Tuesday it may need $30 billion in total government financing to weather the economic downturn and would cut 47,000 jobs worldwide and shutter five more U.S. factories in a massive restructuring plan.

    The automaker is already surviving on $13.4 billion in federal loans and said in a plan submitted to the Treasury Department that it would seek an additional $16.6 billion if economic conditions worsen, but it could achieve profitability in two years and fully repay its loans by 2017.

    The U.S. automaker presented its turnaround plan to the Obama administration as it worked to win concessions from the United Auto Workers union and bondholders to dramatically resize the company. The UAW said it reached a tentative deal with GM, Chrysler LLC and Ford Motor Co. on contract changes but discussions were still under way about how the companies would fund union-run trust funds that will take over the companies' retiree health care obligations starting next year.

    GM said it was making progress but had not yet achieved all the concessions from union workers, debt holders, dealers and suppliers that the Bush administration sough in the loan terms provided last December.

  6. #6
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    I heart unions.
    Free Doug

  7. #7
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    At some point they really do have to buy up capital. Even if they push up the stock price to $5 in acquisitions, the total value of GM isn't worth as much as $30 billion.

    Buy up the company, weather the storm, and then find a buyer to take it off your hands in a year or two.
    Member of the Owlluminati

    Quote Originally Posted by James Madison
    "Knowledge will forever govern ignorance: And a people who mean to be their own Governors, must arm themselves with the power which knowledge gives."
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