Possible GM Liquidation
Canuck57
of respect for others.
And they are not dissidents. They were people, investment funds and
retrement funds that loaned GM money that are getting screwed for it. And
they under the law have rights to be paid, even if GM has to be liquidated
to do it.
People should ask why GM was allowed to operate so long as a bankrupt
company. And where is the $65B pumped into this turkey gone? Corruption?
Bailout buddies?
My guess is Obamanation will have to cough up another $40B or more to rescue
politicians from this corrupt company. My guess is Obama will want to
settle this with taxpayers money, the last thing the government wants is a
discovery of assets and cash on Government Motors. They do not want this
corruption exposed and out in the wide open.
GM says if sale not approved it could liquidate
http://finance.sympatico.msn.ca/investing/news/breakingnews/article.aspx?cp-documentid=20612631
REUTERS
July 02, 2009
NEW YORK (Reuters) - General Motors Corp <GMGMQ.PK> would be forced into
liquidation if its proposed asset sale were not approved despite urging from
dissident bondholders that another course be pursued, the company's lead
bankruptcy lawyer said on Thursday.
The iconic U.S. automaker was in the third and final day of its sale hearing
in U.S. bankruptcy court in Manhattan, asking Judge Robert Gerber for
approval to sell its best assets to a "New GM" funded by the U.S.
government.
A group of dissenting bondholders, however, called the sale the first
attempt at "Chapter 11 nationalization" and said it should be blocked
because the government was trying to circumvent the law.
But GM's lead bankruptcy attorney, Harvey Miller of law firm Weil Gotshal &
Manges, told Judge Gerber that anything but approval of the sale would have
"catastrophic" and "irreversible" consequences for GM and the auto industry.
"The objectors are asking your honor to play Russian roulette," Miller told
Judge Gerber, in response to claims from the bondholder group that GM could
pursue a more traditional Chapter 11 reorganization plan rather than a fast
track sale.
"These are assets that will deteriorate in value, and that deterioration
will be felt by all stakeholders," Miller said, noting that June auto sales
this week showed GM was losing market share to Ford Motor Co <F.N>.
This week GM's Chief Executive Officer Fritz Henderson, and Harry Wilson, a
senior member of the Obama administration's autos task force, told the court
the sale is GM's only option for survival. Henderson said he does not expect
GM to make money in 2009.
If the deal were approved, New GM plans to operate the best parts of the old
company, like Chevrolet and Cadillac, with a less-expensive workforce,
smaller dealer network, and much less debt. The "old GM," which would
include unpopular brands and unneeded factories and liabilities, would be
liquidated in bankruptcy court.
BONDHOLDER GROUP RESISTS
Earlier in the court hearing on Thursday, Michael Richman, a Patton Boggs
attorney representing a group that calls itself the "Unofficial Committee of
Family and Dissident GM Bondholders," argued that the proposed deal had not
been negotiated as a legitimate sale to an independent party.
Instead, he said the government determined what would be needed to make a
"settlement offer" to "favored parties" like the United Auto Workers union,
and then it decided on the price of the sale on the back end of the
negotiations.
Richman said "it's not credible" that the U.S. government would turn on GM
after providing the company with billions of dollars in support. He asked
the judge to "call the bluff" that the government would walk away from the
automaker if a deal were not closed by July 10.
GM, however, has said the holders of more than 50 percent of the company's
bonds support the sale and a lawyer for Wilmington Trust, the indentured
trustee for much of GM's bonds, said his client was not willing to "take the
risk" involved with a reorganization plan, which could further reduce
bondholders' recovery.
Under the terms of the deal, the U.S. Treasury would provide $60 billion in
financing to the new company, including a proposed $50 billion that would
give the U.S. Treasury a 60 percent stake in the company.
The UAW would gain a 17.5 percent stake, the Canadian government would own
about 12 percent, and GM bondholders would be expected to obtain about 10
percent of the new company.
GM is asking Judge Gerber to approve the sale just one month after the
filing for Chapter 11 bankruptcy protection, as no other bidders have come
forward to offer an alternative.
A successful sale of GM's main assets would be the second big victory for
the Obama administration's auto task force. It helped broker the sale of
Chrysler LLC to a group led by Italy's Fiat SpA <FIA.MI> last month.
GM's official unsecured creditors' committee said in court that it was
withdrawing its limited objection to the sale due to new agreements over
GM's wind-down budget and a deal for "New GM" to take on Michigan workers'
compensation claims from Old GM.
The case is In re: General Motors Corp, U.S. Bankruptcy Court, Southern
District of New York, No. 09-50026.
Mike
"Canuck57" <fr...@nospam.com> wrote in message
news:OWu3m.3726$Wx7....@newsfe04.iad...
80 Knight
news:erot451d59gobkhcm...@4ax.com...
> On Fri, 3 Jul 2009 23:26:18 -0400, "Mike" <mike...@lycos.com> wrote:
>
>>But Nobody cares what you think
>
>
> WTF does a canadian care? They don't even have to work up there!
>
> They enjoy socialism! It beats working, I guess!!!!
>
> Why spend money on the defense of your country when you can con the
> USA into doing it for you? They don't even have a navy!
>
> F 'em!
>
> The fact that the USA's missiles went "off course" and wasted a few
> residents of America's hat is enough to show them that we mean what we
> say and say what we mean.
>
> F! The Aussies are better allies, and they're halfway around the
> world!
You should get off Daddy's computer, and get to bed, it's getting late. And
what's with all the kids coming onto Usenet? Try ICQ or something like
that.
Canuck57
"Mike" <mike...@lycos.com> wrote in message
news:4a4ecb39$0$27653$ce5e...@news-radius.ptd.net...
> But Nobody cares what you think
Agreed, you opinion isn't worth a pile of crap either. Will be up to the
judge.
Personally, I hope the judge will liquify, no sense in the taxpayers pumping
another $100B into this turkey and cut the losses. But bet politicians are
up the judges arse intimidating him to forget the law.
Canuck57
"Rick_LT1" <see_si...@127.0.0.1> wrote in message
news:erot451d59gobkhcm...@4ax.com...
> On Fri, 3 Jul 2009 23:26:18 -0400, "Mike" <mike...@lycos.com> wrote:
>
>
>
> WTF does a canadian care? They don't even have to work up there!
>
> They enjoy socialism! It beats working, I guess!!!!
>
> Why spend money on the defense of your country when you can con the
> USA into doing it for you? They don't even have a navy!
>
> F 'em!
And now you have Obamanation, Government Motors and nationalized banks.
Obama is talking health care.
Once that happens you will be in the same boat as Canada. Racking the
government debt like no tomorrow. Kissing away your financial liberty for
leftist-corrupt socialism. So much for being the land of opportunity. BTW,
did I tell you I lived in the old USA and loved it?
You are right, Canada spends more on welfare and corporate corruption than
the military, USA is next. Because when the Obamanation bills come in, you
will not either be able to afford it.
PerfectReign
scratched out:
> But Nobody cares what you think
he/she/it is just annoyed that they don't have any automakers up there in
the frozen 51st state.
--
perfectreign
www.perfectreign.com || www.ecmplace.com
a turn signal is a statement, not a request
Canuck57
"PerfectReign" <theperf...@yahoo.com> wrote in message
news:JWK3m.26267$S16....@newsfe23.iad...
> On Fri, 03 Jul 2009 23:26:18 -0400, Mike fired up the etcha-a-sketch and
> scratched out:
>
>> But Nobody cares what you think
>
> he/she/it is just annoyed that they don't have any automakers up there in
> the frozen 51st state.
We have a few, two of which are American based but sucking Canadian taxes.
Disproportionally I might add.
What a waste of taxes.
80 Knight
> On Sat, 4 Jul 2009 02:21:37 -0400, "80 Knight" <nos...@please.com>
> wrote:
>
>>You should get off Daddy's computer, and get to bed, it's getting late.
>>And
>>what's with all the kids coming onto Usenet? Try ICQ or something like
>>that.
>
> sympathetic.
>
> I still don't trust any of the commonwealth countries other than the
> Aussies and Kiwis.
>
> Sh|t... next thing you'll expect is that 1st world people should have
> respect for the Hindus and Muslims.
>
> Sorry..... Not gonna happen in my lifetime.
Is having your head stuck up your ass comfortable? You are a racist,
ignorant prick. I truly hope you do not have the ability to reproduce.
80 Knight
> On Sat, 4 Jul 2009 23:30:41 -0400, "80 Knight" <nos...@please.com>
> wrote:
>
>>Is having your head stuck up your ass comfortable?
>
>
>>You are a racist, ignorant prick.
>
> And proud of it!
>
>> I truly hope you do not have the ability to reproduce.
>
> him/her very well so I know he/she will agree with me.
>
> Cheers!
People like you make me sick. What's the problem? Are you so afraid that
your grandchild may like a Canadian, Hundu or Muslim more then you that you
feel you must train him/her to hate from birth? I can only hope that your
grandchild is smarter then you (which won't take much, from what I have
seen), and decides what he/she thinks and believes on there own. The world
is moving quickly, and people like you are being left behind. Enjoy the
ride, because it's almost over.
Cheers!