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Report: GM considering Chapter 11 filing, new company

Rob

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Report: GM considering Chapter 11 filing, new company

Automotive News
February 14, 2009 - 12:30 pm ET

DETROIT (Reuters) -- General Motors, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Citing "people familiar with the matter," the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

GM declined to comment, the story said.

GM and Chrysler LLC face a Tuesday deadline to file restructuring plans to the government in exchange for receiving $17.4 billion in federal loans.

Automakers have struggled as U.S. auto sales have tumbled amid a recessionary economy. U.S. auto sales in January tumbled to a 27-year low.

GM has been in talks with bondholders and the UAW to get an agreement on a restructuring that would wipe out about $28 billion in debt for the auto maker, sources have told Reuters. However, it appears unlikely a deal could be reached by the Tuesday deadline, they said.

GM has already announced plans to cut 10,000 salaried workers worldwide, or 14 percent of its staff, impose pay cuts for most remaining white-collar U.S. workers and has offered buyouts to its 62,000 U.S. workers represented by the UAW.

In addition, it is trying to sell its Hummer SUV and Swedish Saab brands and is reviewing the status of its Saturn brand.
 

mtrocket

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Well, now ain't that something!! We give them BILLIONS to ward off bankruptcy... and now they're talking bankruptcy!! What DID GM do with OUR MONEY???
 

First Robin

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Well, now ain't that something!! We give them BILLIONS to ward off bankruptcy... and now they're talking bankruptcy!! What DID GM do with OUR MONEY???

I don't think they have received any money yet, our wonderful government is holding it up. Let's wait and see what happens. Truthfully I think our elected officials have lost their minds doing this stimulas package as all it is doing is pork barrel spending and putting us deeper in debt.
 

standby-V

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You nailed it, it's about pork not our economy.
Letter to GM, Go ahead and go under, I'll hook a donkey to my V when I can't get parts anymore. Just think, I don't have to put gas in anymore, just hay for el Burro.
I don't think they have received any money yet, our wonderful government is holding it up. Let's wait and see what happens. Truthfully I think our elected officials have lost their minds doing this stimulas package as all it is doing is pork barrel spending and putting us deeper in debt.
 

XLR-V Lover

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You nailed it, it's about pork not our economy.
Letter to GM, Go ahead and go under, I'll hook a donkey to my V when I can't get parts anymore. Just think, I don't have to put gas in anymore, just hay for el Burro.


:lol::lol::lol::lol::lol::lol:

Floyd (BB)
 

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