Bankruptcy Leads Possible Plans for GM, Chrysler

Supermans · 03-30-2009, 05:52 PM

http://online.wsj.com/article/SB123841609048669495.html

WASHINGTON -- The Obama's administration's leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.

The move would in essence split both companies into their "good" and "bad" components. The government would like to see the "good" GM to be a standalone company, according to an administration official. The "good" Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said.

GM and Chrysler have had bankruptcy attorneys devising plans for such a move in recent months.

President Barack Obama's task force has told both companies that the administration prefers this route as a way to reorganize the two auto makers, rather than the prolonged out-of-court process that has thus far frustrated administration officials.

GM looks increasingly like it will be forced into filing for bankruptcy protection, sometime in mid-to-late May, in a plan where the automaker breaks into two companies, the surviving entity a "new GM" that maintains key brands such as Chevy and Cadillac and some international units, say several people familiar with the situation.

Stakes in this new GM could be given to creditors and UAW members. It is also possible the new company could be sold whole or in parts to investors.

The auto makers could avoid bankruptcy in the next two months. And there is some brinksmanship still going on in GM's high-level talks with bondholders, union members and creditors.

Supermans · 03-30-2009, 05:54 PM

I have to see this happen to believe it.. I believe that Obama and his administration are doing this as a smoke screen where they appear to be favoring a bankruptcy and last minute will come in and go for the Government takeover angle.. Who knows at this point.. It just feels like it is taking soo damn long to get anything done...

Crowley · 03-30-2009, 05:57 PM

If they go bankruptcy I hope the Union goes ... if not, they still won't be competitive with wages ..

Crowley

Supermans · 03-30-2009, 06:01 PM

I still think GM is going to turn into 'Government Motors" at the end of all this.. I hope and pray I am wrong..

rmyers · 03-30-2009, 06:24 PM

Personally I think unions should be outlawed. They have outlived their usefulness and have single-handedly caused the export of more jobs than any other force in this country.

86IROC&2010SS · 03-30-2009, 06:30 PM

Quote:

Originally Posted by rmyers

Personally I think unions should be outlawed. They have outlived their usefulness and have single-handedly caused the export of more jobs than any other force in this country.

I couldn't agree more.

super60 · 03-30-2009, 06:37 PM

Quote:

Originally Posted by rmyers

Personally I think unions should be outlawed. They have outlived their usefulness and have single-handedly caused the export of more jobs than any other force in this country.

Please someone tell me how the UAW/CAW caused this current problem !!! Did it not start with the American Banking System or was i just day dreaming...I'm suprised you don't blame us for world hunger and baldness !

interrex · 03-30-2009, 06:38 PM

Stop the thread it is political not about Camaro5

Silver Streak · 03-30-2009, 06:46 PM

Quote:

Originally Posted by super60

Please someone tell me how the UAW/CAW caused this current problem !!! Did it not start with the American Banking System or was i just day dreaming...I'm suprised you don't blame us for world hunger and baldness !

this thread is

, and I am getting sick of seeing this kind of crap here!

super60 · 03-30-2009, 06:46 PM

Quote:

Originally Posted by interrex

Stop the thread it is political not about Camaro5

Sorry... I lost my head for a split second. Back to regular scheduled programming.

03-30-2009, 05:52 PM	#1
Supermans Camaro & Stang Enthusiast Drives: 2011 Mustang 5.0 in Kona Blue Join Date: Mar 2008 Location: Miami Posts: 4,752 View My Garage	Bankruptcy Leads Possible Plans for GM, Chrysler http://online.wsj.com/article/SB123841609048669495.html WASHINGTON -- The Obama's administration's leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter. The move would in essence split both companies into their "good" and "bad" components. The government would like to see the "good" GM to be a standalone company, according to an administration official. The "good" Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said. GM and Chrysler have had bankruptcy attorneys devising plans for such a move in recent months. President Barack Obama's task force has told both companies that the administration prefers this route as a way to reorganize the two auto makers, rather than the prolonged out-of-court process that has thus far frustrated administration officials. GM looks increasingly like it will be forced into filing for bankruptcy protection, sometime in mid-to-late May, in a plan where the automaker breaks into two companies, the surviving entity a "new GM" that maintains key brands such as Chevy and Cadillac and some international units, say several people familiar with the situation. Stakes in this new GM could be given to creditors and UAW members. It is also possible the new company could be sold whole or in parts to investors. The auto makers could avoid bankruptcy in the next two months. And there is some brinksmanship still going on in GM's high-level talks with bondholders, union members and creditors. __________________ Bought my Camaro from Eric Hall(817) 421-7266

03-30-2009, 05:54 PM	#2
Supermans Camaro & Stang Enthusiast Drives: 2011 Mustang 5.0 in Kona Blue Join Date: Mar 2008 Location: Miami Posts: 4,752 View My Garage	I have to see this happen to believe it.. I believe that Obama and his administration are doing this as a smoke screen where they appear to be favoring a bankruptcy and last minute will come in and go for the Government takeover angle.. Who knows at this point.. It just feels like it is taking soo damn long to get anything done... __________________ Bought my Camaro from Eric Hall(817) 421-7266

03-30-2009, 05:57 PM	#3
Crowley Okie doke Drives: 2012 GT500 Join Date: Sep 2008 Location: McKinney Texas Posts: 3,568 View My Garage	If they go bankruptcy I hope the Union goes ... if not, they still won't be competitive with wages .. Crowley __________________

03-30-2009, 06:01 PM	#4
Supermans Camaro & Stang Enthusiast Drives: 2011 Mustang 5.0 in Kona Blue Join Date: Mar 2008 Location: Miami Posts: 4,752 View My Garage	I still think GM is going to turn into 'Government Motors" at the end of all this.. I hope and pray I am wrong.. __________________ Bought my Camaro from Eric Hall(817) 421-7266

03-30-2009, 06:24 PM	#5
rmyers Drives: Both American Made Join Date: Feb 2008 Location: Texas Posts: 781	Personally I think unions should be outlawed. They have outlived their usefulness and have single-handedly caused the export of more jobs than any other force in this country. __________________ 2012 ZL1 #213 M6 Black on Black 2013 ZL1 #2638 Convertible Auto 2010 Chevrolet Suburban 2011 GMC Seirra HD Denali

03-30-2009, 06:38 PM	#8
interrex Drives: challenger Join Date: Oct 2008 Location: north America Posts: 16	Stop the thread it is political not about Camaro5

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