GM to be bought by the US Government
#1
General Motors Corporation's 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.
GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.
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.
Story:
http://current.com/items/90076188_gm...government.htm
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.
GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.
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.
Story:
http://current.com/items/90076188_gm...government.htm
Last edited by carterx; 05-20-2009 at 09:47 AM.
#2
Could not find substantiating evidence of this story in other news sources... Something had to happen though.
#3
I saw it reported over on autoblog.com too. They're usually pretty bang on in their reporting...but we'll just have to wait and see. Their deadline is fast approaching.
#4
I googled "GM to be bought" but on the same line as "swartlkk" until it's official and it's out in the news, it's more a rumor
#5
Great, another thing that Obama's administration is going to screw up!
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