GM has submitted its final reorganization plan to the government; the plans call for the government and GM’s unions forgiving GM’s debt obligations in exchange for those two entities taking majority stakes in the auto company, thus avoiding a GM bankruptcy. Current stockholders are left in the cold, but 90% of them must agree to [...]
Archive for April, 2009
GM Submits “Hail Marry Pass” of a Reorganization Plan
April 27th, 2009
Published in
GM Bailout
Tags: GM Bailout, GM reorganization
US Doesn’t Want to Run Domestic Automakers
April 27th, 2009
The US government said Monday that it didn’t want to run GM or Chrysler, despite the news that the federal government would likely become the majority stockholder of GM through a restructuring plan submitted to the Obama administration by General Motors.
Published in
Chrysler bailout, GM Bailout
GM to Default on Loans
April 22nd, 2009
A day after being tapped to receive $5 billion more in bailout funds, GM is going to default on its loans from creditors. It will not be making a $1 billion loan payment due on June 1, which could mean GM is heading for bankruptcy court.
Not surprisingly (as banks hold many GM loans), financial stocks [...]
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GM Bailout
Tags: GM Bailout, GM default
GM and Chrysler Tapped for $5 Billion More in Bailout Money
April 21st, 2009
GM could receive $5 billion more in government loans, and Chrysler $500 million, according to a report filed Tuesday by the federal government.
The government’s inspector general in charge of the auto bailout programs filed the report, which gives GM until June 1 to meet government-mandated conditions (Chrysler only has until April 30).
Published in
Chrysler bailout, GM Bailout
Tags: GM Bailout
Salaried Retirees to Meet with Obama’s Auto Task Force
April 19th, 2009
Sources revealed to the Wall Street Journal that representatives of 200,000 salaried white-collar retirees have been asked to meet with the auto task force later this week.
The retirees want to keep their benefits despite the car companies’ massive restructuring plans and possible bankruptcies. Salaried retirees are not covered by union contracts and are therefore more [...]
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Chrysler bailout, GM Bailout
Foreign Policy on Obama: More Czars Than the Romanovs
April 18th, 2009
Foreign Policy points out that President Obama has appointed not only more czars than any other US President– he’s topped the Russian Romanovs themselves, who had 18 czars over a period of generations. Obama’s czars include ones for not just drugs but terrorism, the border, TARP, urban issues, faith issues, the stimulus, energy, health care, [...]
Published in
Car industry
Tags: car czar
GM CEO: Bankruptcy “Probable”
April 17th, 2009
New GM CEO Fritz Henderson said Friday that while he would prefer other options, bankruptcy is a more probable outcome of ongoing negotiations with the Obama administration over GM’s future profitability.
“I felt several weeks ago that it would be more probable that we would need to go through a bankruptcy process. I certainly feel that [...]
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GM Bailout
Obama’s Auto Chief Target of Pay-to-Play Probe
April 17th, 2009
News arose on Friday that Steven Rattner, head of President Obama’s auto task force, is being investigated by the state of New York for links to a pay-to-play scandal involving possible kickbacks in exchange for access to the state’s pension fund.
The investigation has been conducted for two years by New York Attorney General Andrew Cuomo [...]
Published in
Car industry
Tags: Andrew Cuomo, David Loglisci, New York pension fund, Obama auto task force, pay-to-play, Quadrangle Group, Steven Rattner
More Plant Closings For GM
April 17th, 2009
GM’s new CEO estimated today that more plant closings would be in store for the car company. The closings will be announced in the next few months.
CNBC’s auto reporter Phil Lebeau broke the news, along with the proposed sale price for the Hummer line: $150 million, very low for a line of autos.
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GM Bailout
Forbes: GM Should “Run to Bankruptcy Court”
April 1st, 2009
Shikha Dalmia of Forbes writes that GM “should run–not walk–to bankruptcy court. That may be the company’s only chance to free itself from the triple-vise of unions, creditors and now President Barack Obama–who is by no means the least life-threatening of the lot.”
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GM Bailout
Tags: GM Bailout, GM bankruptcy