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GM bankruptcy becoming more likely, CEO says


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http://business.theglobeandmail.com/servle...y/Business/home

TOM KRISHER

The Associated Press

May 11, 2009 at 11:44 AM EDT

DETROIT — Bankruptcy protection for the U.S.'s biggest auto maker is becoming more probable with a deadline just over two weeks away, the company's top executive told reporters Monday.

General Motors Corp. [GM-N] chief executive officer Fritz Henderson is still holding out hope that the company can restructure without court protection, but he says the tasks to complete before a June 1 government-imposed deadline are large.

The auto maker, Mr. Henderson said, is looking at its operations country-by-country to determine where it might have to file for bankruptcy, but he says a U.S. bankruptcy doesn't necessarily mean that GM would file in other locations.

“Certainly the task that we have in front of us is large,” Mr. Henderson said during a conference call updating the company's restructuring efforts. “There is still an opportunity and still a chance for it to be done outside of a court process.”

Fritz Henderson

General Motors CEO Fritz Henderson says any U.S. bankruptcy filing by the auto maker doesn't necessarily mean that GM would file in other locations.

General Motors

General Motors has received $15.4-billion (U.S.) in federal loans, and the government deadline to restructure or seek Chapter 11 protection is just over two weeks away. But the company must reach concessionary agreements with unions, persuade thousands of bondholders to exchange $27-billion in debt for 10 per cent of GM's stock, cut thousands of dealers, close plants and lay off more salaried workers.

Under Chapter 11 reorganization, a company can stay in operation under court protection while it sheds debts and unprofitable assets to emerge in a stronger financial position.

Also Monday, Mr. Henderson left open the possibility that GM would move its corporate headquarters out of Detroit. The company, he said, is looking at everything within its business.

“It's not like we have that queued up at the top of our list,” he said, adding that GM has a large number of people in Detroit and is proud to be here.

He would not comment about reports about Fiat Group SpA's interest in obtaining 80 per cent of GM's European Opel operations, saying that any structure must address the needs of both partners.

Mr. Henderson said GM has an urgent need for funding from the German government, so any partner for its European operations would have to be suitable to the government.

“We have a need for funding, actually, in our European business, that's important and urgent and the German government hasn't indicated an interest in running our business,” Mr. Henderson said. “We're going to make sure that any partner we pick in this business is going to be suitable for them, so that if we need their support, we obviously want them to find any partner to be reasonable and acceptable.

Mr. Henderson cast doubt on reports that GM may sell its Latin American operations, saying they have consistently brought great returns to the company.

“This is a business that we know and like very much,” he said.

GM is still in the process of negotiating with the United Auto Workers about six factories that the company intends to close, Mr. Henderson said, and it is negotiating with both the UAW and Canadian Auto Workers about concessions.

The company also plans to notify dealers later this week about its plans to reduce their ranks by about 2,600 by 2010. The company has 6,246 dealerships, many of which are not profitable because of lower sales volumes.

Mr. Henderson said GM has said the number of parties interested in its Hummer brand has dropped to two from three, and he expects a decision by the end of May. For GM's Swedish Saab unit, there are a number of interested parties, he said, adding that a resolution will take a month or two.

Negotiations are still under way to sell the Saturn distribution network, but GM would be open to selling factories to make the products if someone were interested, Mr. Henderson said.

“To date, haven't seen any specific proposals in that regard, but this is something we would be open to,” he said.

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Its about damn time. But this needs to be a TRADITIONAL bankruptcy not a pre-packaged deal. The only hope is the current bond holders tell the government to f***-off, and if they don't it will be a mess and I could be done with GM.

Edited by gm4life
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Trust me, this whole thing will be a mess for a long time to come.

You know my politics, GM4life...and this whole thing with the auto industry is just about enough to make me vote Republican in 2012 if we get a decent candidate.

I am just mad as hell about what's happening...and again, trust me, it's going to be a mess.

Your liberal buddy in Ohio,

Chris

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Trust me, this whole thing will be a mess for a long time to come.

You know my politics, GM4life...and this whole thing with the auto industry is just about enough to make me vote Republican in 2012 if we get a decent candidate.

I am just mad as hell about what's happening...and again, trust me, it's going to be a mess.

Your liberal buddy in Ohio,

Chris

I agree it is going to be a mess. Government should take care of the things they need too, like the economy and such. Not fixing the auto industry! I am mad as hell too, lets hope for the best and hope GM can get the fresh start and have the freedom they deserve.

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...agree 100 percent plus. Just stopped by the local Pontiac dealer on my way home, GM4life...have you seen the Solstice Targa in the flesh...er..um...sheet metal?

That thing has got to be one of the best looking cars ever, IMHO. If we could just get GM on the right track....AGHHHHHHH.

Suppose we could go rob a bank to the tune of 66 Grand so both of us could have a Sosltice GXP Targa in the garage, GM4life?

Chris

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Trust me, this whole thing will be a mess for a long time to come.

You know my politics, GM4life...and this whole thing with the auto industry is just about enough to make me vote Republican in 2012 if we get a decent candidate.

Your liberal buddy in Ohio,

Chris

It is a frustrating time, but I don't think I could ever vote Republican..I'd have to have a lobotomy first. I'm think had the other side won, things for the auto industry would be worse now...

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...agree 100 percent plus. Just stopped by the local Pontiac dealer on my way home, GM4life...have you seen the Solstice Targa in the flesh...er..um...sheet metal?

That thing has got to be one of the best looking cars ever, IMHO. If we could just get GM on the right track....AGHHHHHHH.

Suppose we could go rob a bank to the tune of 66 Grand so both of us could have a Sosltice GXP Targa in the garage, GM4life?

Chris

I'd like that alot, but would rather have a G8 GT/GXP or Camaro SS. I have seen them in the flesh once and loved it. If I were rich I would be buying Pontiac's up so fast it make your head spin.

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I'd like that alot, but would rather have a G8 GT/GXP or Camaro SS. I have seen them in the flesh once and loved it. If I were rich I would be buying Pontiac's up so fast it make your head spin.

The CTS, G8 GT/GXP, and Camaro SS are the only GMs I'd seriously consider buying in the near future..they are all so appealing. The Solstice and Sky are neat, but too impractical for me.

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The CTS, G8 GT/GXP, and Camaro SS are the only GMs I'd seriously consider buying in the near future..they are all so appealing. The Solstice and Sky are neat, but too impractical for me.

I like the CTS too, but if were going Caddy it would be a FWD luxo-barge that I always wanted a loaded DTS Platinum Performance in White Diamond!

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I like the CTS too, but if were going Caddy it would be a FWD luxo-barge that I always wanted a loaded DTS Platinum Performance in White Diamond!

Nothing wrong with that... the DTS does look awfully good in White Diamond. I'm more of a sports sedan fan, but I like the old school luxo boats, like the Town Car and the late Fleetwood Brougham..

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Its about damn time. But this needs to be a TRADITIONAL bankruptcy not a pre-packaged deal. The only hope is the current bond holders tell the government to f***-off, and if they don't it will be a mess and I could be done with GM.

With bondholders, the UAW and management fighting each other, and adding the US Government to the circus, if a GM Ch11 filing goes the 'traditional' route, the company will end up in Ch7 in no time...

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With bondholders, the UAW and management fighting each other, and adding the US Government to the circus, if a GM Ch11 filing goes the 'traditional' route, the company will end up in Ch7 in no time...

Yeah that's generally why there is a judge who presides over it.

It is no different than any other company who goes Ch. 11

Edited by Teh Ricer Civic!
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Dame greedy debt holders and the insurance they took out is why GM will be forced into Chapter 11.

Credit insurance hampers GM restructuring

By Henny Sender in New York

Published: May 11 2009 23:33 | Last updated: May 11 2009 23:33

Hedge funds and other investors stand to make billions of dollars on credit insurance contracts if GM de­clares bankruptcy, a prospect that is complicating efforts to persuade creditors to agree to a restructuring plan for the automaker, analysts say.

Holders of $27bn in GM bonds have until June 1 to decide whether to swap their debt for a 10 per cent equity stake in the company as part of an offer that would give the US government 50 per cent of the shares, a United Auto Workers union healthcare fund 39 per cent and existing shareholders 1 per cent.

Gread always destroys companies.

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Yeah that's generally why there is a judge who presides over it.

It is no different than any other company who goes Ch. 11

Well, Delphi went the traditional Ch11 route, and it still looks like it's in the ditch... if the procedure is somehow prepackaged (in the sense that major deals are done before the filing) it becomes much smoother, shorter in duration, and ideally much less disruptive.

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The traditional route will work mark my words, and it will be REALLY ugly, but the company that would emerge would be ready to be sucessful and have much reduced costs. If the bond holders dig in their heals and say "hell-no" to a pre-packaged deal they have ALOT of hope. If they take the government route I see nothing but the end, because with those kind of legacy costs per-car and high union wages (of older workers) it will run them into the ground again and again. Chapter 11 and a new company with no union is really GM's solution, also without big exec perks.

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The traditional route will work mark my words, and it will be REALLY ugly, but the company that would emerge would be ready to be sucessful and have much reduced costs. If the bond holders dig in their heals and say "hell-no" to a pre-packaged deal they have ALOT of hope. If they take the government route I see nothing but the end, because with those kind of legacy costs per-car and high union wages (of older workers) it will run them into the ground again and again. Chapter 11 and a new company with no union is really GM's solution, also without big exec perks.

I see the UAW getting screwed in a pre-packaged bankruptcy that formally goes through Ch11, regardless of Washington's "we stand by workers" rethoric... Enter Ch11 w/ bondholders', Government's and management's blessings and screw the UAW by transferring legacy costs and liabilities somewhere else with part of the funding in new-GM stock...

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I see the UAW getting screwed in a pre-packaged bankruptcy that formally goes through Ch11, regardless of Washington's "we stand by workers" rethoric... Enter Ch11 w/ bondholders', Government's and management's blessings and screw the UAW by transferring legacy costs and liabilities somewhere else with part of the funding in new-GM stock...

Fact of the matter is the UAW is screwed anyway you look at it. GM CANNOT afford the wages of the (older) UAW workers and the legacy costs. GM CAN make a car in this country and make a profit, but the structure of the current set-up will not work. If they go the pre-packaged route GM really will loose hardly any costs at all, and will back in the same spot they are in now. GM needs to do the hard things NOW, and with the economy tanking and new car sales down it is the perfect time. GM also needs to tell the execs to get real with their perks and and pay too, because people watching a company get run into ground don't do any good.

I will have hope for GM if the news I hear come June is good, and if they don't do what they need too do, they will die. The government and the UAW aren't going to save GM but a country ready to drive American again and investors that see hope and promise in what once was a great American company will. If I had no hope for GM or some sort of common sense solution with the debt holders/bond holders I would have left along time ago. GM's handling and the bond holders choice for what kind of bankruptcy they want could determine the ultimate fate of the company, and whether I countiune to buy GM products. (After the Camaro SS of course.)

Edited by gm4life
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...sad thing is, GM is going to see a lot of talent walk out the door any way you look at it.

Building cars ain't easy, and 30 year people are tough to replace.

Chris

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....all I'm saying is that experience is worth a lot. GM will loose out regardless...

And +1 on the new Camaro thing. You need one, GM4life. I saw one today at the local Chevy dealer and had myself a look.

Pretty awesome!

Chris

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....all I'm saying is that experience is worth a lot. GM will loose out regardless...

Chris

Yes, as is Michigan..I read an article the other day on the 'brain drain' Michigan has been suffering from for a long time...

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And +1 on the new Camaro thing. You need one, GM4life. I saw one today at the local Chevy dealer and had myself a look.

In good time and before they finish producing the 5th generation I will get an SS without a sunroof for sure and now weather it will be a stick or auto I am not sure. Same goes for the color I am waiting on the white and haven't made up my mind a 1SS or 2SS, no RS package for me though. Mine will have polished wheels for the record. If I don't get one like this my son will. So either way we end up with one in the family. I promised myself this and so did my son since we saw it.

Edited by gm4life
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Don't blame this on the UAW.

This is a global economy greed problem, period.

Also, GM would be in serious chapter 11 or in liquidation right now if it wasn't for the government loans.

I always have put a portion of it on the UAW because they asked for much more than GM could give them. Then GM was stupid enough to actually do it, instead of remaing competitive on costs, like they should off. Honda, Toyota etc. come in and can make a decent product for less money and then GM builds a few "stinkers" and you get where GM is today.

Edited by gm4life
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I'm honestly surprised it didn't happen already, especially when it came close to bankruptcy, what was it, in 2004/2005?

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Don't blame this on the UAW.

This is a global economy greed problem, period.

Also, GM would be in serious chapter 11 or in liquidation right now if it wasn't for the government loans.

You are right, this is not the UAWs fault. Because it is GMs fault for giving into contracts which so obviously were bad for them in the long run. Although i suppose one might argue that it is also the UAWs fault for failing to see how to maximize the company for all involved but i digress.

This problem has stemmed from years and years of easy money, which lead people to create new stuff to get more money because all the regular customers have already been solicited thanks to the ease of money. The higher banking institutions don't care if everything topples down around them because it wont be on their shoulders, it will be a Federal Reserve "social" problem.

So clearly the root of all the problems is in fact the Federal Reserve.

As to the Ch. 11, i HIGHLY beg to differ, GM is in a WEAKER stance to go through Ch. 11 now than if they had simply gone through it in the first place. Your bargaining chips are somewhat diluted when you got the government holding your hand. Why stave off the inevitable and prolong the suffering of your own company?

Edited by Teh Ricer Civic!
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Dame greedy debt holders and the insurance they took out is why GM will be forced into Chapter 11.

Credit insurance hampers GM restructuring

By Henny Sender in New York

Published: May 11 2009 23:33 | Last updated: May 11 2009 23:33

Hedge funds and other investors stand to make billions of dollars on credit insurance contracts if GM de­clares bankruptcy, a prospect that is complicating efforts to persuade creditors to agree to a restructuring plan for the automaker, analysts say.

Holders of $27bn in GM bonds have until June 1 to decide whether to swap their debt for a 10 per cent equity stake in the company as part of an offer that would give the US government 50 per cent of the shares, a United Auto Workers union healthcare fund 39 per cent and existing shareholders 1 per cent.

Gread always destroys companies.

It's not greed, it's gettig a fair shake in this deal.

The bond holders have the most invested and want a larger chunk of GM than the govt or UAW.

They have said they WOULD GO ALONG with a deal that gives them 58% of GM with the UAW at 41%. They would probably compromise in the upper 40% range.

The Feds, however, have told GM they will not let the bond holders, the biggest investors, hold more than 10% of GM , just about forcing a bankruptsy. This is what is REALLY complicating the efforts.

This is what happens when we have Soviet style control of industry!

Edited by GMFAN
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In good time and before they finish producing the 5th generation I will get an SS without a sunroof for sure and now weather it will be a stick or auto I am not sure. Same goes for the color I am waiting on the white and haven't made up my mind a 1SS or 2SS, no RS package for me though. Mine will have polished wheels for the record. If I don't get one like this my son will. So either way we end up with one in the family. I promised myself this and so did my son since we saw it.

This is excellent news, my friend. I love white cars and this thing should just look killer in white.

Chris

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Dame greedy debt holders and the insurance they took out is why GM will be forced into Chapter 11.

Credit insurance hampers GM restructuring

By Henny Sender in New York

Published: May 11 2009 23:33 | Last updated: May 11 2009 23:33

Hedge funds and other investors stand to make billions of dollars on credit insurance contracts if GM de­clares bankruptcy, a prospect that is complicating efforts to persuade creditors to agree to a restructuring plan for the automaker, analysts say.

Holders of $27bn in GM bonds have until June 1 to decide whether to swap their debt for a 10 per cent equity stake in the company as part of an offer that would give the US government 50 per cent of the shares, a United Auto Workers union healthcare fund 39 per cent and existing shareholders 1 per cent.

Gread always destroys companies.

Greed? These are legitimate investors and businessmen. Tell you what. Wire me 2,500$ for this months bills, I will send you 150$, a picture I drew on the back of a napkin and if I get a tax return another 150$. We'll call it even because I am sure you are better off than me anyway.

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Its about damn time. But this needs to be a TRADITIONAL bankruptcy not a pre-packaged deal. The only hope is the current bond holders tell the government to f***-off, and if they don't it will be a mess and I could be done with GM.

Than Chrysler is gone for good and thousand of additional people are out of work and the retirees get zilch.

Learn what is happening as Chrysler is undergoing a TRADITIONAL bankruptcy under Chapter 11 reorganization section 363 aka a pre-packaged deal.

The auto task force is only implementing what was outline in the agreement for the companies to receive the TARP bridge loans in december 2008.

Chrysler is all but done for anyway - this is just managed (political) way to keep it around for a little while longer in some form.

In GM's case - the government and Fritz need to put pressure on their "Unsecured" bondholders to convert their debt to equity in the exchange by the end of the month. That is valid and exactly what was done with GMAC when it became a bankholding company at the end of last year. Unsecured means these bondholders have little rights to GM's assets in liquidation. That is why some bought insurance for their investments. That is the problem.

Sorry to tell you - the government is the only bank that will lend GM money. The government as with other banks set the terms.

Ford cannot accept government money because it would break covenants set with its banks in the 2006 loans.

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Than Chrysler is gone for good and thousand of additional people are out of work and the retirees get zilch.

Learn what is happening as Chrysler is undergoing a TRADITIONAL bankruptcy under Chapter 11 reorganization section 363 aka a pre-packaged deal.

The auto task force is only implementing what was outline in the agreement for the companies to receive the TARP bridge loans in december 2008.

Chrysler is all but done for anyway - this is just managed (political) way to keep it around for a little while longer in some form.

In GM's case - the government and Fritz need to put pressure on their "Unsecured" bondholders to convert their debt to equity in the exchange by the end of the month. That is valid and exactly what was done with GMAC when it became a bankholding company at the end of last year. Unsecured means these bondholders have little rights to GM's assets in liquidation. That is why some bought insurance for their investments. That is the problem.

Sorry to tell you - the government is the only bank that will lend GM money. The government as with other banks set the terms.

Ford cannot accept government money because it would break covenants set with its banks in the 2006 loans.

Well if the government is the only way then GM might as well be screwed then. Honestly if GM can't fix the problems the old fashioned way outside of a pre-packaged chapter 11 they are more screwed than I thought. I know GM could, but government helping them out and giving the company to the Union and themselves IS NOT the way to go about it. Then they would have even more hoops to jump through and be forced to build exactly what the government wants, just watch. At that point I could very well be done with GM. The only hope for greatness this company has is a TRADITIONAL CHAPTER 11. It has worked for MANY other compaines and can work for GM.

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Well if the government is the only way then GM might as well be screwed then. Honestly if GM can't fix the problems the old fashioned way outside of a pre-packaged chapter 11 they are more screwed than I thought. I know GM could, but government helping them out and giving the company to the Union and themselves IS NOT the way to go about it. Then they would have even more hoops to jump through and be forced to build exactly what the government wants, just watch. At that point I could very well be done with GM. The only hope for greatness this company has is a TRADITIONAL CHAPTER 11. It has worked for MANY other compaines and can work for GM.

800px-Conrail_logo_2.svg.png

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...the government and Fritz need to put pressure on their "Unsecured" bondholders to convert their debt to equity in the exchange by the end of the month...

This is the exact problem, GOVERNMENT should not pressure the bondholders and owners of GM to do anything. It is THEIR company. Do people realize how half-a$$ backwards this is? The GOVERNMENT telling private investors what to do? I mean, honestly how can you even begin to justify or understand this? That is not the role of GOVERNMENT, this is not a party issue but an issue of free market vs. socialism. I thought in this country we had a free market, ahhh maybe I am wrong? Then again I have seen lots of things under Bush and Obama both that have scared me, if this comes about like Chrysler getting strong-armed it will be another over stepping of GOVERNMENT. GM needs to take their company back, file a traditonal bankruptcy shed all the extra's big bonus payouts, union contracts and all and start fresh. It will be REALLY ugly but GM could very well have a chance again, I am nearly positive. The bondholders are the last hope and I hope they don't get strong armed by Uncle Sam, because that is not his job.

Do people really understand the role of our government? Why do we think GM is too big to fail?

This thought of letting the government push private investors around is scary. I know lots of liberals who think it is too, and agree GM needs to file for a traditional chapter 11. I know lots of republicans who think the exact same thing, and I know many American's who are sick of supporting GM and DO NOT want the government running them. $h!.

:deathwatch:

Edited by gm4life
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I wonder if the government should have nationalised GM and Chrysler, forming a new 'American Motors'.

This consoldated approach worked for British Leyland in the '70s, after all... :)

(note: this post contains sarcasm, which some may not understand)

Edited by Cubical
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Holy Crap could we get off the British Leyland references already?! How many of you would pick a 1960s or 1970s British marque over a 1960s or 1970s domestic marque for reliability? styling? performance?

The British cars from that era were ugly, performed badly, and had reliability that would make a Vega look like a 1998 Camry. Many GM and some Chrysler vehicles are at the top of their game. At worst, they are average in their respective segments. Even Sebring, though not a great car, isn't a bad car.

The situation is NOT the same.

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Holy Crap could we get off the British Leyland references already?! How many of you would pick a 1960s or 1970s British marque over a 1960s or 1970s domestic marque for reliability? styling? performance?

The British cars from that era were ugly, performed badly, and had reliability that would make a Vega look like a 1998 Camry. Many GM and some Chrysler vehicles are at the top of their game. At worst, they are average in their respective segments. Even Sebring, though not a great car, isn't a bad car.

The situation is NOT the same.

Read closely--I didn't say anything about the cars. Why are you comparing them? I was speculating about the consolidation and nationalization angle that happened with BL in the '70s. How would that approach work w/ GM and Chrysler? That's all. Just speculating that if GM and Chrysler merged, and were nationalized, could it be better than bankruptcy? Just something to think about.

Edited by Cubical
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Read closely--I didn't say anything about the cars. Why are you comparing them? I was speculating about the consolidation and nationalization angle that happened with BL in the '70s. How would that approach work w/ GM and Chrysler? That's all. Just speculating that if GM and Chrysler merged, and were nationalized, could it be better than bankruptcy? Just something to think about.

Your comment that the consolidated approach worked for Leyland (which it obviously didn't)... and you're not the first person to may the BL reference.

Merging GM and Chrysler would be like tying the Lusitania to the Titanic to prevent sinking. Now you just have one really big ship with two really big holes.

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Your comment that the consolidated approach worked for Leyland (which it obviously didn't)... and you're not the first person to may the BL reference.

That's why I put the smiley after the comment.. should have put <sarcasm> tags around the comment instead. Forget it.

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This is the exact problem, GOVERNMENT should not pressure the bondholders and owners of GM to do anything. It is THEIR company. Do people realize how half-a$$ backwards this is? The GOVERNMENT telling private investors what to do? I mean, honestly how can you even begin to justify or understand this? That is not the role of GOVERNMENT, this is not a party issue but an issue of free market vs. socialism. I thought in this country we had a free market, ahhh maybe I am wrong? Then again I have seen lots of things under Bush and Obama both that have scared me, if this comes about like Chrysler getting strong-armed it will be another over stepping of GOVERNMENT. GM needs to take their company back, file a traditonal bankruptcy shed all the extra's big bonus payouts, union contracts and all and start fresh. It will be REALLY ugly but GM could very well have a chance again, I am nearly positive. The bondholders are the last hope and I hope they don't get strong armed by Uncle Sam, because that is not his job.

Do people really understand the role of our government? Why do we think GM is too big to fail?

This thought of letting the government push private investors around is scary. I know lots of liberals who think it is too, and agree GM needs to file for a traditional chapter 11. I know lots of republicans who think the exact same thing, and I know many American's who are sick of supporting GM and DO NOT want the government running them. &#036;h&#33;.

:deathwatch:

Get your head out of your idolized little world for a second. The government told GM what to do with the unsecured debt holders as early as November of last year and agree to in December – why because they are unsecured lenders. In a traditional Chapter 11 bankruptcy they are one step up from a shareholder in getting anything out the company. GM’s debt has been trading for pennies on the dollar for a long time now and what GM has offered the unsecured lenders is comparable to the going price of the debt for the going price of the stock. Any bank recapitalizing the company would have forced the UAW and unsecured lender to probably take a bigger haircut in all of this.

Ford is not accepting government money and yet they are in the process of taking similar action with Ford stock going to the UAW VEBA Healthcare trust to fulfill part of their obligations.

Really give me a break with your diatribe. Be happy Uncle Sam stepped up to the plate to support the company. If not for Bush’s action back in December both GM and Chrysler would be out of business as no other bank or private entity stepped up to plate to provide financing for the company under a Chapter 11 reorg. No one.

And you know what – your pocket book would have really hurt under that scenario when you could not get replacement parts for your car(s) or a dealer network to fix it. How many GM cars are their on the road at this very moment? – about 20 million, maybe more!

Before you start spewing some more ideological crap – I highly doubt you are either a shareholder or an unsecured lender so your stake in this is zero. In any case if you are a share holder or unsecured lender – without the government financing GM you would be getting nothing anyway.

I suggest you take the time and actually read GM’s prospectus they released late last month outlining the restructuring of the balance sheet. It is fair.

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This is excellent news, my friend. I love white cars and this thing should just look killer in white.

Chris

...Oh...and silver ain't bad either. I took the day off of work to take my son in for a medical appointment, and we dropped by the local Chevy dealer on the way home.

It looks great in silver also...

Chris

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Get your head out of your idolized little world for a second. The government told GM what to do with the unsecured debt holders as early as November of last year and agree to in December – why because they are unsecured lenders. In a traditional Chapter 11 bankruptcy they are one step up from a shareholder in getting anything out the company. GM’s debt has been trading for pennies on the dollar for a long time now and what GM has offered the unsecured lenders is comparable to the going price of the debt for the going price of the stock. Any bank recapitalizing the company would have forced the UAW and unsecured lender to probably take a bigger haircut in all of this.

Ford is not accepting government money and yet they are in the process of taking similar action with Ford stock going to the UAW VEBA Healthcare trust to fulfill part of their obligations.

Really give me a break with your diatribe. Be happy Uncle Sam stepped up to the plate to support the company. If not for Bush’s action back in December both GM and Chrysler would be out of business as no other bank or private entity stepped up to plate to provide financing for the company under a Chapter 11 reorg. No one.

And you know what – your pocket book would have really hurt under that scenario when you could not get replacement parts for your car(s) or a dealer network to fix it. How many GM cars are their on the road at this very moment? – about 20 million, maybe more!

Before you start spewing some more ideological crap – I highly doubt you are either a shareholder or an unsecured lender so your stake in this is zero. In any case if you are a share holder or unsecured lender – without the government financing GM you would be getting nothing anyway.

I suggest you take the time and actually read GM’s prospectus they released late last month outlining the restructuring of the balance sheet. It is fair.

I just disagree, 100 percent. That is okay I know what it will take for a sucessful GM, and government and unions owning/running isn't it. The next generation of cars is really going to suck either way.

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