GM Goes Bankrupt
#1
06-01-2009, 11:11 AM
GM Goes Bankrupt
Well, it's official. If you haven't heard already GM went into chapter 11 a few hours ago...
(From Autoblog):
The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.
As we told you earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.
According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.
You can read more about the filing and the ramifications at the link below.
[Source: Detroit Free Press | Image: Michael Heiman/Getty]
(From Autoblog):
The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.
As we told you earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.
According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.
You can read more about the filing and the ramifications at the link below.
[Source: Detroit Free Press | Image: Michael Heiman/Getty]
#3
06-01-2009, 12:32 PM
Originally Posted by Sisk28
the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.
#7
06-01-2009, 03:28 PM
Well fellas- looks like I'm no longer buying new GM products anymore. I'll buy used and even get parts to rebuild, but I want nothing to do with a gov't owned auto company. Next thing you know, ONSTAR will have a new use-but for the govt instead.
Thread
Thread Starter
Forum
Replies
Last Post
hotrodsbyg
2nd Generation S-series (1995-2005) Tech
6
07-03-2010 02:37 PM
naf821
2nd Generation S-series (1995-2005) Tech
10
08-08-2007 07:19 AM
blazerrick
2nd Generation S-series (1995-2005) Tech
14
12-28-2005 09:07 PM
MusicMaverick
2nd Generation S-series (1995-2005) Tech
1
12-28-2005 04:09 PM
blaze1925
2nd Generation S-series (1995-2005) Tech
2
09-20-2005 11:54 PM
