GM Said to Plan June 1 Bankruptcy as Debt Plan Gains

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Via Autoblog


May 28 (Bloomberg) -- General Motors Corp., the world's largest automaker until its 77-year reign ended in 2008, plans to file for bankruptcy protection on June 1 and sell most of its assets to a new company, people familiar with the matter said.
GM's path will be smoothed by an accord today giving some of its biggest bondholders an equity stake in the reorganized automaker. The U.S. Treasury is requiring that an unspecified percentage of debt holders accept the terms by 5 p.m. New York time on May 30, Detroit-based GM said in a regulatory filing.

"If bondholders agree to this up front, this would essentially be a prepackaged bankruptcy," said Shelly Lombard, an analyst with New York-based bond-research firm Gimme Credit LLC. "GM could exit Chapter 11 faster."

Battered by almost $88 billion in losses since 2004, GM fell short in a bid to cut debt by $44 billion under a U.S.-set June 1 deadline to restructure outside court. The 100-year-old automaker seeks to rebuild around assets such as the Cadillac and Chevrolet brands as it follows Chrysler LLC into bankruptcy.

The people familiar with GM's plans didn't specify where the automaker might make its Chapter 11 filing. They asked not to be identified because the details aren't public.

Vice Chairman Bob Lutz, while not confirming GM's intentions or a possible bankruptcy venue, said any court restructuring would be quick.

'Pay It Back'

"We intend to get in and out very soon," he said today at an Automotive Press Association luncheon in Detroit. "The U.S. government wants its money back, and our plan is to pay it back as quickly as possible. The U.S. government doesn't want to own auto companies."

The bankruptcy probably would last 60 to 90 days, said an Obama administration official who asked not to be identified because the talks are private. The Treasury will finance the trip through bankruptcy with about $50 billion, which includes $19.4 billion in current borrowing, GM said in a statement.

GM's bankruptcy will be the third-biggest in U.S. history after Lehman Brothers Holdings Inc. and WorldCom Inc., based on GM's reported global assets of $91 billion and total liabilities of $176.4 billion as of Dec. 31. Chrysler, which sought court protection on April 30, listed assets of $39 billion.

Going to court would end the suspense for GM, which said it expected to declare bankruptcy after failing to get enough support for a debt-for-equity exchange on $27.2 billion in unsecured bonds.

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tmukg21

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Joined Apr 23, 2008
Detroit could sell all those cars just sitting at ports just piling up for .60 on the dollar, they already wrote most of them off on taxes and such probably +the bail out money , but .....idk
 
3,668
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Joined Oct 5, 2007
Lets all thank Barack Obama for wasting billions and billions of dollars on something that was inevitable...
 
4,993
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Joined Jun 28, 2004
Fede DPT wrote: [hr][/hr] Lets all thank Barack Obama for wasting billions and billions of dollars on something that was inevitable...








And attempting to reward his friends, punish his enemies and disregard the rule of law the entire way. He gives everything to the UAW and asks for bond holdersand dealerships to bear virtually all of the "shared sacrifice." Republicans have and would do similar things, the moral of the story is thatgovernment never should have even been allowed to think it had the power to arbitrarily change the rule in the middle of the game. Lawless governments aretrademarks of the Third World afterall.

BTW, I saw Keith Olbermann's wonderful "debunking" that Obama is targeting dealerships owned by GOP donors. Of course in "debunking"that claim by mentioning that almost all dealership owners are GOP donors, he merely has shown that Obama's reprisals took less effort than one wouldthink. Since all bu ta few dealerships are GOP donors, all they had to do was pick names from a hat as opposed to waste time on careful research and producinga list for their financial proscriptions.
 
7,451
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Joined Jan 19, 2005
Pick your spots and take advantage of dealerships on the brink of folding.
Steals won't be everywhere, but a trip out of state could save you thousands.
I grabbed my dodge off the lot at a couple thousand under auction price.
 
7,451
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Joined Jan 19, 2005
Originally Posted by lurkin2long

I would def drive a Jeep SRT, but then.....man the mpg on that thing is super ugly.
Love my SRT8, but definitely would never own it as my primary vehicle.
22 mpg with windows down is great considering 425 horses/420 torque.
 

lurkin2long

Banned
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Joined Nov 29, 2007
Originally Posted by Supermanblue79

Originally Posted by lurkin2long

I would def drive a Jeep SRT, but then.....man the mpg on that thing is super ugly.
Love my SRT8, but definitely would never own it as my primary vehicle.
22 mpg with windows down is great considering 425 horses/420 torque.

son i dont believe youre getting 22 mpg, no way.

Fuel economy sucks-there is really no other way to say it. I was getting 11 mpg around town and could only manage 15.8 mpg on the highway at 70 mph-this Jeep needs a sixth gear desperately.
http://blog.cardomain.com/2009/03/18/jeep-grand-cherokee-srt-8-one-fast-box/
 
7,451
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Joined Jan 19, 2005
Each SRT8 model/car is different and depends on how it's driven. A Heavy foot, hard stops, and running the air cuts huge chunk out of your mpg in thesecars. After driving premium fuel gas guzzlers for many years I've learned a few tricks on how to get decent miles on a tank full.
 

lurkin2long

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8,635
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Joined Nov 29, 2007
Originally Posted by Supermanblue79

Each SRT8 model/car is different and depends on how it's driven. A Heavy foot, hard stops, and running the air cuts huge chunk out of your mpg in these cars. After driving premium fuel gas guzzlers for many years I've learned a few tricks on how to get decent miles on a tank full.

like what?

srt8 isnt suppose to be fro drivin miss daisy. i interested to know how you pull this off?
 
3,668
11
Joined Oct 5, 2007
Originally Posted by Rexanglorum

Fede DPT wrote: [hr][/hr] Lets all thank Barack Obama for wasting billions and billions of dollars on something that was inevitable...

And attempting to reward his friends, punish his enemies and disregard the rule of law the entire way. He gives everything to the UAW and asks for bond holders and dealerships to bear virtually all of the "shared sacrifice." Republicans have and would do similar things, the moral of the story is that government never should have even been allowed to think it had the power to arbitrarily change the rule in the middle of the game. Lawless governments are trademarks of the Third World afterall.

BTW, I saw Keith Olbermann's wonderful "debunking" that Obama is targeting dealerships owned by GOP donors. Of course in "debunking" that claim by mentioning that almost all dealership owners are GOP donors, he merely has shown that Obama's reprisals took less effort than one would think. Since all bu ta few dealerships are GOP donors, all they had to do was pick names from a hat as opposed to waste time on careful research and producing a list for their financial proscriptions.





I didnt see that, but I knew about the donors and the GOP. This administration makes me sick.
 
7,451
4,078
Joined Jan 19, 2005
Originally Posted by lurkin2long

Originally Posted by Supermanblue79

Each SRT8 model/car is different and depends on how it's driven. A Heavy foot, hard stops, and running the air cuts huge chunk out of your mpg in these cars. After driving premium fuel gas guzzlers for many years I've learned a few tricks on how to get decent miles on a tank full.

like what?

srt8 isnt suppose to be fro drivin miss daisy. i interested to know how you pull this off?
Simple.
Easy on the pedal, route for highway drives instead of city, speed management, and staying out of gridlock times.
 
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