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GM sale cleared; path opens to exit Chapter 11

Faster horses

Well-known member
sale cleared, path opens to exit Chapter 11
By TOM KRISHER, AP Auto Writer Tom Krisher, Ap Auto Writer – 14 mins ago
DETROIT – The path is now clear for General Motors Corp. to leave bankruptcy protection in record time as a leaner company that is better equipped to compete in a brutal global auto market. On Thursday, a judge's order allowing GM to sell most of its assets to a new company went into effect, despite a last-minute appeal by plaintiffs in a product liability case.

GM spokeswoman Julie Gibson said U.S. Bankruptcy Judge Robert Gerber's order became effective at 12 p.m. EDT. GM lawyers are working on paperwork to close the sale as quickly as possible, after which GM would leave bankruptcy protection.

GM CEO Fritz Henderson will hold a news conference in Detroit Friday morning to explain executive cuts, management changes and the company's plan to make money by emphasizing quality and fuel economy. He will be joined by Edward Whitacre Jr., who will lead the board of GM.

Once the world's largest and most powerful automaker, the "new GM" will become government-owned, but leaner and greener, cleansed of debts and burdensome contracts that nearly dragged it into liquidation. But the new company faces tough international competition and the worst auto sales market in more than 25 years.

John Pottow, a University of Michigan Law School professor who specializes in bankruptcy, said opponents of the sale had little legal recourse to block it because their issues were shot down by higher courts in Chrysler's bankruptcy case.

"It's done," Pottow said. "I knew they were dead as soon as the Chrysler case was decided."

He expects GM to close the deal and emerge from bankruptcy on Thursday in 39 days, a record for a company its size, he said.

GM spokesman Tom Wilkinson said he could not give a time frame for when the sale will close.

After clearing bankruptcy court, the new GM will focus only on four core brands, Chevrolet, Cadillac, Buick and GMC. The company is in the process of selling Saturn, Saab, Hummer and its Adam Opel GmbH unit in Europe, and it will discontinue Pontiac by the end of the year.

GM would not have been able to clear bankruptcy court at such a high speed without help from its crosstown rival Chrysler Group LLC, which exited bankruptcy on June 10 after 42 days.

Pottow said Chrysler's case set favorable legal precedents in previously uncharted territory of bankruptcy law.

The U.S. government, which will wind up loaning GM up to $50 billion to save its roughly 88,000 U.S. jobs, also played a significant role through the Treasury Department's auto task force, Pottow said.

"It's amazing what you can do when you have a government task force convened to help your company," he said.

The government provided bankruptcy financing, and the task force served the role of management consultant, telling GM that its early restructuring plans were too rosy and demanding further cuts, he said.

The parts of the company not moving over to the new company will become part of "old GM," a collection of assets and liabilities that will be liquidated over the next few years and sold off to pay the company's various creditors including people with pending lawsuits.

The assets range from the expected things, such as closed plants and other facilities, to more quirky items including a golf course in New Jersey and a church in Indiana.

The government has pledged $1.18 billion to help fund the wind down.
 
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Anonymous

Guest
GM moving into the 21st century?

GM's eBay play
Dealers would be able to list inventories on auction site through a California pilot project.

Last Updated: July 10, 2009: 5:16 PM ET

NEW YORK (CNNMoney.com) -- Fresh out of bankruptcy, the new General Motors hopes to soon start selling its whole line of cars on eBay through a pilot program.

While the marketing effort would initially be limited to California, it could go national if it proves to be successful, said GM Chief Executive Fritz Henderson at a news conference Friday.

A tie-up with eBay wouldn't be entirely new for GM. The automaker has been placing all of its "GM Certified" used cars on eBay for over a year. Toyota and Chrysler have similar programs for their certified used cars, as well.

However, there is no definitive agreement in place and discussions are still ongoing, said both GM and eBay.

"At this time, no plans have been finalized with General Motors," said Rob Chesney, vice president for eBay Motors in a prepared statement. "We hope to support GM's new company and vision going forward."


Automakers are prevented by state laws from selling cars, new or used, directly to consumers. Only licensed auto dealers can do that. Under GM's plan, California GM dealers could put their new vehicle inventories on the auction site and eBay users would bid on them. Each vehicle would also have a "Buy it now" price for shoppers who don't want to risk losing out in a bidding process.

Winning bidders, or "Buy it now" buyers, would complete the purchase at the dealership, said Susan Docherty, general manager for GM's Buick, Pontiac and GMC brands.
 

Faster horses

Well-known member
OT, did you see/hear about GM dropping their contract with Stillwater Mining in Columbus, Mt.

Oh yeah. I almost forgot. They are going to continue to honor their
contracts with Russia and South Africa.

How about that for stimulating jobs in the USA?
 
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Anonymous

Guest
Faster horses said:
OT, did you see/hear about GM dropping their contract with Stillwater Mining in Columbus, Mt.

Oh yeah. I almost forgot. They are going to continue to honor their
contracts with Russia and South Africa.

How about that for stimulating jobs in the USA?

COLUMBUS, MT--(Marketwire - July 8, 2009) - STILLWATER MINING COMPANY (NYSE: SWC) announced today it has received notice advising that General Motors Corporation ("GM") has petitioned the bankruptcy court to reject the existing Palladium & Rhodium Supply Agreement between GM and Stillwater Mining Company (the "Company"). In response, the Company expects to file an objection with the bankruptcy court and has been in contact with its elected representatives.

YEP- I saw that....But just because they filed for exit from the contract does not mean it will happen...Its still up to the bankruptcy courts...GM will probably get it because the courts have been trying to do everything they can to make them lean- so they have a chance for survival....

Is the Stillwater contracts and the Russian and South African ones the same?...Or are they priced/configured differently?

Now that GM is again a private entity- do you think the government should intervene and make them honor the Stillwater contract and buy from them?

Interestingly today I heard part of a forum from the governors conference on energy- headed by Gov Schweitzer... And one of the things brought up by Interior Secretary Salazar is that since his appointment over 3 million more acres of oil/gas leases have been let (split about half off shore and half on shore)- and he believed many more will be by the time he gets thru reanalyzing the Utah land that was put on hold....
But as was brought up by Governor Ritter of Colorado- over 1/2 the wells around the nation are shut down- and 1/2 the rigs stacked- because foreign oil is cheaper than what domestic production cost is...
 

Faster horses

Well-known member
Been thinking about the ebay thing you posted.
That's sure not going to do much to support the towns Little
League; radio and newspapers; taxes, and all the other
thiings local business does.
 

Sandhusker

Well-known member
I don't get it. They said that there were too many dealerships (even though not a single dealership cost them a dime), but now they're, in effect, making every internet connection a dealeship.
 
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Anonymous

Guest
Faster horses said:
Been thinking about the ebay thing you posted.
That's sure not going to do much to support the towns Little
League; radio and newspapers; taxes, and all the other
thiings local business does.

The sale would still have to be handled thru the dealer...


Automakers are prevented by state laws from selling cars, new or used, directly to consumers. Only licensed auto dealers can do that. Under GM's plan, California GM dealers could put their new vehicle inventories on the auction site and eBay users would bid on them. Each vehicle would also have a "Buy it now" price for shoppers who don't want to risk losing out in a bidding process.

Winning bidders, or "Buy it now" buyers, would complete the purchase at the dealership, said Susan Docherty, general manager for GM's Buick, Pontiac and GMC brands
 

Sandhusker

Well-known member
Oldtimer said:
Faster horses said:
Been thinking about the ebay thing you posted.
That's sure not going to do much to support the towns Little
League; radio and newspapers; taxes, and all the other
thiings local business does.

The sale would still have to be handled thru the dealer...


Automakers are prevented by state laws from selling cars, new or used, directly to consumers. Only licensed auto dealers can do that. Under GM's plan, California GM dealers could put their new vehicle inventories on the auction site and eBay users would bid on them. Each vehicle would also have a "Buy it now" price for shoppers who don't want to risk losing out in a bidding process.

Winning bidders, or "Buy it now" buyers, would complete the purchase at the dealership, said Susan Docherty, general manager for GM's Buick, Pontiac and GMC brands

They could of done this before wiping out all those dealers, putting all those people out of work and violating contractual law.
 
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Anonymous

Guest
Sandhusker said:
Oldtimer said:
Faster horses said:
Been thinking about the ebay thing you posted.
That's sure not going to do much to support the towns Little
League; radio and newspapers; taxes, and all the other
thiings local business does.

The sale would still have to be handled thru the dealer...


Automakers are prevented by state laws from selling cars, new or used, directly to consumers. Only licensed auto dealers can do that. Under GM's plan, California GM dealers could put their new vehicle inventories on the auction site and eBay users would bid on them. Each vehicle would also have a "Buy it now" price for shoppers who don't want to risk losing out in a bidding process.

Winning bidders, or "Buy it now" buyers, would complete the purchase at the dealership, said Susan Docherty, general manager for GM's Buick, Pontiac and GMC brands

They could of done this before wiping out all those dealers, putting all those people out of work and violating contractual law.

Coulda, Woulda, Shoulda....Just like GW shoulda been doing his job rather than running the country broke- and putting us into the Bush Bust which brought all these companies down... But that didn't happen....
 

Sandhusker

Well-known member
Oldtimer said:
Sandhusker said:
Oldtimer said:
The sale would still have to be handled thru the dealer...

They could of done this before wiping out all those dealers, putting all those people out of work and violating contractual law.

Coulda, Woulda, Shoulda....Just like GW shoulda been doing his job rather than running the country broke- and putting us into the Bush Bust which brought all these companies down... But that didn't happen....

Cue the circus music... :roll:
 

aplusmnt

Well-known member
Any information out there to rather the Unions gave up any thing? Or did things stay the same in regards wages and benefits for workers and past workers?
 
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