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"We" will own GM

A

Anonymous

Guest
Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company....

GM bankruptcy still likely despite deal
Major bondholders have agreed to a new offer that gives them am increased stake in GM if they agree to not fight plans for a quick bankruptcy turnaround.

By Chris Isidore, CNNMoney.com senior writer
Last Updated: May 28, 2009: 1:52 PM ET

NEW YORK (CNNMoney.com) -- The Treasury Department and a committee of major bondholders at General Motors have reached a deal that could give creditors a larger stake in GM than previously offered. But bankruptcy is still likely in the next few days despite the deal.

The agreement, revealed in a Securities and Exchange Commission filing by GM (GM, Fortune 500) early Thursday, would essentially give the bondholders 10% of the company but also give them the rights to buy an additional 15% of the company's stock at a low price.

The deal is unlikely to allow GM to avoid bankruptcy, however. If anything, it might clear potential obstacles to the government's plans to use bankruptcy as a way to turn around the nation's largest automaker. That's because bondholders accepting the new offer agreed not to fight the government's plans for a quick bankruptcy at GM.

As part of such a filing, GM would emerge with only its more profitable plants, brands, dealerships and contracts. GM's unprofitable plants, contracts and other liabilities that the company can no longer afford would be left behind in bankruptcy court.

According to Thursday's filing, the new offer is structured so that the assets of GM that would remain in bankruptcy would receive a 10% stake in a "new GM" that would be used to pay bondholders. The old GM would also receive the right to buy the 15% stake in the new company that emerges from bankruptcy.

The bondholders would likely receive the overwhelming majority of the old company's assets, including the shares in the new company, as part of the bankruptcy process.

In the original offer to bondholders, creditors would only receive a 10% stake in a new GM.

The filing also disclosed that GM will not repay the loans it has already received from the government or much of the additional federal aid it will get as part of the bankruptcy.

The government has already given GM $19.4 billion to fund operations and cover losses this year, and total help is expected to exceed $50 billion.

GM will pay back $8 billion of that sum. The government will also receive $2.5 billion in preferred shares of GM that pay a dividend and are more similar to a loan than stock.

But more than $40 billion of federal help to GM will be converted into a 72.5% stake in the new company. This means that for taxpayers to make back any of the money loaned to GM, it will have to be because shares of the new GM increase dramatically in value following an exit from bankruptcy.


A senior administration official conceded Thursday that while the Treasury Department hopes the new GM will be financially viable even if auto sales remain weak, it will be difficult for taxpayers to recover its full investment in GM.

"I don't know how much we're going to recover," he said.

A trust fund run by the United Auto Workers union would also have a 17.5% stake in the new GM, as well as the right to buy an additional 2.5% stake. UAW President Ron Gettelfinger said earlier this month the company hopes to sell its stake in GM as soon as possible.

But the administration official said that it is unlikely GM's stock will be publicly traded while the company is in bankruptcy. Even though the "new GM" could emerge from bankruptcy in two to three months, the process for the assets remaining in bankruptcy could last between 6 and 18 months.

That will make it difficult for the government and the union trust fund to to quickly sell their shares in GM.
http://money.cnn.com/2009/05/28/news/companies/gm_bondholders/index.htm?postversion=2009052810
 
A

Anonymous

Guest
backhoeboogie said:
Oldtimer said:
Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company....

Kind of like the old Soviet Union?

Who else was going to buy them :???:

After the Bush Bust there wasn't much choice...Many of the top economists said the closing of GM and Chrysler would definitely lead us into the Bush Depression- back to the days of Hoovervilles and soup kitchens... :(
 

Mike

Well-known member
Oldtimer said:
backhoeboogie said:
Oldtimer said:
Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company....

Kind of like the old Soviet Union?

Who else was going to buy them :???:

After the Bush Bust there wasn't much choice...Many of the top economists said the closing of GM and Chrysler would definitely lead us into the Bush Depression- back to the days of Hoovervilles and soup kitchens... :(


If the Bush bust was universally equal for everyone, why not Ford Too? :lol: :lol: :lol:

The GM & Chrysler bankruptcies were almost exclusively contributed to Democratic controlled UAW deals. Which by the way, the UAW is coming out like bandits in both.

Some of those UAW fatcats need to be in a soup line............... :roll:

Just how damn big of a fool are you? :lol: :lol: :lol:
 

aplusmnt

Well-known member
Oldtimer said:
Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company....

Bull Crap! I will never buy a vehicle that the Government owns!!!!!!!!!!

I have always been a Chevy person, down to the 1970 Chevelle I am restoring for my 11 year old.

But I will buy Ford or Toyota in future! Never a Chevy or a Dodge!

I will not be an enabler of Socialism or Fascism!

I hope Chevy fails and Chrysler! I hope Ford becomes the greatest Car company to ever exist and Chevy workers beg me for a job cleaning toilets!
 

kolanuraven

Well-known member
aplusmnt said:
Oldtimer said:
Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company....

Bull Crap! I will never buy a vehicle that the Government owns!!!!!!!!!!

I have always been a Chevy person, down to the 1970 Chevelle I am restoring for my 11 year old.

But I will buy Ford or Toyota in future! Never a Chevy or a Dodge!

I will not be an enabler of Socialism or Fascism!

I hope Chevy fails and Chrysler! I hope Ford becomes the greatest Car company to ever exist and Chevy workers beg me for a job cleaning toilets!


Don't worry about the Gov't owing it....the owner will end up being China.
 

backhoeboogie

Well-known member
Good thought Kolo. Does China own us now? What price is Obama asking for us?

By the way, I am posting after you and I aint Hoppy. He must be slipping.
 

hypocritexposer

Well-known member
Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company....

What about the GM vehicles that are made outside the US? Like Canada and Mexico? What if they are the profitable plants?

The best thing to do would be to fight for some good business decisions now, so you can get your initial investment back out. Increase the value of the company and dump the Government ownership on the market.

If a car built in the US is $200 in the hole by the time it's built and one built in Canada provides $100 profit, which one is best to buy?

This is where you'll have to think more about economics and business and less about your protectionism and labeling laws OT.
 

kolanuraven

Well-known member
backhoeboogie said:
Good thought Kolo. Does China own us now? What price is Obama asking for us?

By the way, I am posting after you and I aint Hoppy. He must be slipping.


I saw a report saying that GM is amping up it's production at it's China plants.


Hoppy....that dude slipped long time ago!!! :wink: :wink:
 

Sandhusker

Well-known member
OT, "Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company.... "

I disagree. I see it as a disincentive because the US government has no damn call getting into private business! This is a huge step toward socialism and I won't support it in any way. Nobody should. I'll buy a Ford. Heck, I'll buy a flippin Peugot before I buy any auto that the government owns a piece of.
 
A

Anonymous

Guest
Sandhusker said:
OT, "Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company.... "

I disagree. I see it as a disincentive because the US government has no damn call getting into private business! This is a huge step toward socialism and I won't support it in any way. Nobody should. I'll buy a Ford. Heck, I'll buy a flippin Peugot before I buy any auto that the government owns a piece of.

Well- if we hadn't had 8 years of an administration that was totally " Asleep at the Wheel" and blindly " Backslapping anything Corporate America" did even to the point of throwing out all rule of law to kiss the multinational conglomerates and finnacial giants hineys we wouldn't even be talking about this... :(

I'd much rather see my taxdollars supporting and buying up ownership of GM and Chrysler- than the past 7 years of us paying for the George Bush Bridges and superhighways in Baghdad or the Swami El Mullah Electric plant in Tikrit-- and seeing us paying for the college educations of the UAW workers living in the US's kids than the Haliburton foreign contractors kids... :( :roll:

But thats the difference in you and me- I believe and support America- and want to see it succeed- rather than the extremists like Rush's attitude of working to see it fail.. :(
 

jigs

Well-known member
OT, you are one of the most foolish people to EVER post online. you hate Bush so much it is pathetic.did he cut the welfare money you are living on?

you reall do not have a clue about finance do you ?? other than bribes and under the table deals as a sherriff I mean....
 
A

Anonymous

Guest
jigs said:
OT, you are one of the most foolish people to EVER post online. you hate Bush so much it is pathetic.did he cut the welfare money you are living on?

you reall do not have a clue about finance do you ?? other than bribes and under the table deals as a sherriff I mean....

MsSage- where are you- more personal attacks with no argument :shock: :wink: :p :lol:
 

Silver

Well-known member
you know OT, other than your misguided views on Candadian beef, bse. et al, you are making more and more sense by the day. :shock:
 

Sandhusker

Well-known member
Oldtimer said:
Sandhusker said:
OT, "Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company.... "

I disagree. I see it as a disincentive because the US government has no damn call getting into private business! This is a huge step toward socialism and I won't support it in any way. Nobody should. I'll buy a Ford. Heck, I'll buy a flippin Peugot before I buy any auto that the government owns a piece of.

Well- if we hadn't had 8 years of an administration that was totally " Asleep at the Wheel" and blindly " Backslapping anything Corporate America" did even to the point of throwing out all rule of law to kiss the multinational conglomerates and finnacial giants hineys we wouldn't even be talking about this... :(

I'd much rather see my taxdollars supporting and buying up ownership of GM and Chrysler- than the past 7 years of us paying for the George Bush Bridges and superhighways in Baghdad or the Swami El Mullah Electric plant in Tikrit-- and seeing us paying for the college educations of the UAW workers living in the US's kids than the Haliburton foreign contractors kids... :( :roll:

But thats the difference in you and me- I believe and support America- and want to see it succeed- rather than the extremists like Rush's attitude of working to see it fail.. :(

You're ignoring that there are other car companies that operated under the Bush years, and they're not BK. You're also ignoring that these companies went belly up because they became union benefit packages that were funded by manufacturing cars - and you can put that blame where it belongs - Democrats.

The difference between you and I is that I think the gentlemen who wrote the Constitution got it right, you clearly don't. I also look at socialist societies around the world and see none of them with the standard of living that we have. Therefore, I don't understand why you want it. Why not learn from other's mistakes?
 
A

Anonymous

Guest
Silver said:
you know OT, other than your misguided views on Candadian beef, bse. et al, you are making more and more sense by the day. :shock:

You know if I hadn't of had to be involved in foreclosing on so many friends/neighbors places- and seeing the tears and hearing the crying- as the price of cattle went south- as we watched semi load after semi load of Canadian cattle and Trans X trucks of beef head south at the same time while Canadian officials told us we couldn't ship US cattle north in "fair" trade because "they were all diseased"- it probably wouldn't have affected me so much....

But knowing what it- NAFTA (which I supported when it was proposed) did with the subsequent trade barrier rules Canada put up- and later finding out how designed it was for profiteering of certain Corporate industries- left a tough rock in my craw to digest- and I'm not sure it will ever pass.... :(
 

Silver

Well-known member
Oldtimer said:
Silver said:
you know OT, other than your misguided views on Candadian beef, bse. et al, you are making more and more sense by the day. :shock:

You know if I hadn't of had to be involved in foreclosing on so many friends/neighbors places- and seeing the tears and hearing the crying- as the price of cattle went south- as we watched semi load after semi load of Canadian cattle and Trans X trucks of beef head south at the same time while Canadian officials told us we couldn't ship US cattle north in "fair" trade because "they were all diseased"- it probably wouldn't have affected me so much....

But knowing what it- NAFTA (which I supported when it was proposed) did with the subsequent trade barrier rules Canada put up- and later finding out how designed it was for profiteering of certain Corporate industries- left a tough rock in my craw to digest- and I'm not sure it will ever pass.... :(

Funny, we've always felt the same way in reverse up here.
 

Cal

Well-known member
Oldtimer said:
Sandhusker said:
OT, "Definitely an incentive to buy GM made vehicles over the imports - since "we" will own the company.... "

I disagree. I see it as a disincentive because the US government has no damn call getting into private business! This is a huge step toward socialism and I won't support it in any way. Nobody should. I'll buy a Ford. Heck, I'll buy a flippin Peugot before I buy any auto that the government owns a piece of.

Well- if we hadn't had 8 years of an administration that was totally " Asleep at the Wheel" and blindly " Backslapping anything Corporate America" did even to the point of throwing out all rule of law to kiss the multinational conglomerates and finnacial giants hineys we wouldn't even be talking about this... :(

I'd much rather see my taxdollars supporting and buying up ownership of GM and Chrysler- than the past 7 years of us paying for the George Bush Bridges and superhighways in Baghdad or the Swami El Mullah Electric plant in Tikrit-- and seeing us paying for the college educations of the UAW workers living in the US's kids than the Haliburton foreign contractors kids... :( :roll:

But thats the difference in you and me- I believe and support America- and want to see it succeed- rather than the extremists like Rush's attitude of working to see it fail.. :(
Going to be alot tougher to succeed in the future....with all of your boy B'roke Obama's deficits to service.
 
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