I s'pose the stock held by stockholders now will be "Zer0'ed out and issued to the new owners on par with ownership?
Those previous stockholders will be left holding an empty bag but the UAW members will get their obligations in full? :lol:
Those previous stockholders will be left holding an empty bag but the UAW members will get their obligations in full? :lol:
Bankrupt G.M. Says It Owes $172 Billion (vs. assets of $82 billion)
New York Times | June 1, 2009 | David E. Sanger, Jeff Zeleny, and Bill Vlasic
General Motors filed for bankruptcy on Monday morning, submitting its reorganization papers to a federal clerk in Lower Manhattan.
G.M. said it had $82.3 billion in assets and $172.8 billion in debts. Its largest creditors were the Wilmington Trust Company, representing a group of bondholders holding $22.8 billion in debts, and affiliates of the United Auto Workers union, representing nearly $20.6 billion in employee obligations.
...
Mr. Obama is taking several risks under the plan. None may be bigger than the decision that the United States government will take a 60 percent share of the stock in a new G.M., leaving taxpayers vulnerable if the overhaul is not successful. (Canada, for its part, is taking a 12 percent stake.)
“We don’t think that after this next $30 billion, they will need more money,” one senior administration official said. “But the fact is there are things you don’t know — like when the car market will come back, and how much Toyota and Honda and Volkswagen will benefit from the chaos.”
...
Officials say the president will insist that once the government sets up new management and a board, it will remove itself from G.M.’s day-to-day operations. But even his aides anticipate intense pressure as the company’s managers are called to testify in Congress and face questions like why they decided to build new cars in Mexico and South Korea, rather than in Michigan or the South.
“Congress and many Americans are going to say, if we own it, why can’t we make these decisions?” one of Mr. Obama’s top economic aides said, “and it’s going to be a challenge to answer that.”
(Excerpt) Read more at nytimes.com ...