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| User Info | GM CEO says BK is probable in forum [NotSoBreaking] | |||
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Lakeshorelady Posts: 5191 Incept: 2007-08-17 
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Preparing all for the filing--- DETROIT – General Motors Corp. Chief Executive Fritz Henderson said Friday that a bankruptcy filing is "probable" because of the restructuring goals GM must meet to get more government loans, but that isn't the company's preferred option. In a conference call with reporters, Henderson said GM is working on two parallel plans: one that involves bankruptcy and one that doesn't. "Contingency planning is under way," he said. "We are on several tracks." Henderson also said GM will need more government aid sometime in the second quarter, although the timing has yet to be decided. In its viability plan filed Feb. 17, the company said it would need $4.6 billion in the quarter, and that hasn't changed, he said. "At this point, it would be premature to say that there has been an approval for further funding, at least from a GM perspective," Henderson said. GM has already received $13.4 billion in government loans, and it must meet strict requirements to cut labor costs and debt by a June 1 deadline. Henderson said the company will be prepared to file for bankruptcy if it is unable to reach those goals out of court. The decision to file for bankruptcy would be made with the Treasury Department and GM's board of directors, but the government is not pressuring GM to file, Henderson said. "I felt several weeks ago that it would be more probable that we would need to go through a bankruptcy process," he told reporters. "I certainly feel that way. That continues today. But I wouldn't be able to hazard a guess as to what the probabilities would be." If GM does file for bankruptcy, Henderson said speed is important. GM would seek agreements with creditors and union before filing, or go through a fast in-court process. "It's all about speed," he said. "This environment is not helpful for us." Henderson said GM has been focused on rebuilding its viability strategy so it hasn't yet launched intensive discussions with its bondholders. Talks with the United Auto Workers, he said, are second in line to Chrysler LLC, which faces an April 30 deadline to restructure and forge an alliance with Italy's Fiat Group SpA. Henderson emphasized that GM's restructuring plan calls for the automaker to keep four core brands — Chevrolet, Cadillac, GMC and Buick — adding that GMC and Buick are highly profitable for the company. He also said the company will not sell its ACDelco parts division, despite having potential buyers. "It's a highly profitable business for us, it's creating good, strong cash flow," Henderson said. "Our conclusion was that we weren't going to get the value for the business. We'd rather keep it and grow it." Henderson also said the company's April sales were "OK," but he did not elaborate. He said GM expects final bids from three potential Hummer buyers by next week, with a decision expected by the end of April. Several parties, Henderson said, are interested in GM's troubled Saab unit. More than six parties are interested in buying a stake in GM's Opel unit in Germany, and Henderson said he expects work to be done on a possible deal in the next two to three weeks. "These are serious people. Many of them are financial players, some of them industrial players," he said, adding that GM's performance in Europe has performed better than expected http://news.yahoo.com/s/ap/20090417/ap_o.... 2009-04-17 14:17:16
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Mondocondo Posts: 3071 Incept: 2007-12-03 
Miami
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I think BK is the only viable solution to any of these zombie companies. However, what I find ironic and highly problematic, is that a company like GM, which actually MANUFACTURES something, is left to go the BK route, while all the zombie banks, which just push around paper and don't actually produce anything except **** sandwiches and profits for their executives, are kept alive at any cost. I just don't get it.
2009-04-17 14:28:56
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Outerlimits Posts: 335 Incept: 2008-03-13
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How many CDS involved?
2009-04-17 14:43:35
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Lakeshorelady Posts: 5191 Incept: 2007-08-17
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Mondo I hear ya'. Maybe it is an option because they make something, lol. Watching GM this past 6 months or so is confirmation of the five stages of grief. Looks like they are just getting to "acceptance" Outer Re the CDS. The value of CDS seems to be quite a point of contention with a large range of numbers put out there. The numbers I have seen are 4 or so billion (offered in testimony to Congress) to IIRC Mish saying a trillion. 2009-04-17 14:51:15
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Outerlimits Posts: 335 Incept: 2008-03-13
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Thanks 2009-04-17 14:54:42
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Lkruvant Posts: 3517 Incept: 2008-03-13
DC - VA
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Mondo... because bankers got to devise the solution. If the AMA had, we'd all be getting gov-paid MRI scans right now I know that sounds simple-minded, and "it must be more complicated," but I assure you, that's it. If it was the National Restauranteurs Assn., we'd be discussing this over a steak. Last modified:
2009-04-17 15:01:37 by lkruvant
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Zenthunder Posts: 4461 Incept: 2007-10-11
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This is weird. Doesn't feel right. Aren't they supposed to deny it will ever happen right up to when it does??? ---------- Forex. Using 4h timeframe, 2 hour offset. Bars close 6,10,2 PST. My #1 job is to wait for the perfect trade. 2009-04-17 15:06:20
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Retire@60 Posts: 815 Incept: 2007-09-20 Texas
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Good thing we gave them all that money last year.   
2009-04-17 16:42:01
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Weezie Posts: 3420 Incept: 2008-05-19
Now shuddap and take your medicine...
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Quote:Watching GM this past 6 months or so is confirmation of the five stages of grief. Looks like they are just getting to "acceptance" I hope "pull the trigger" follows closely thereafter. The quicker they BK and restructure, the sooner we can move on. Assuming, of course, that the issue of the AIG counterparties/CDOs are properly addressed. ---------- The government isn't ****ing Santa Claus! 2009-04-17 16:48:57
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Mayorquimby Posts: 4463 Incept: 2008-09-18 United States of Mortgages Online
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We didn't give "them" money - Obama gave the UAW your money to thank them for voting his way. Simple.
---------- - It is impossible to introduce into society a greater evil than this - the conversion of the law into an instrument of plunder. - Government is a great fiction, by which everybody tries to live at the expense of everybody else. - Bastiat 2009-04-17 17:34:30
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Jata1 Posts: 2021 Incept: 2009-03-08
asia
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maybe they figure if they say it out loud enough the car buyers will get numb to it. Personally, I don't buy anything from anybody feeding at the public trough.
---------- 2009-04-17 20:04:49
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Gametracker Posts: 262 Incept: 2008-03-07
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Quote:I hope "pull the trigger" follows closely thereafter. But what about the little issue of those $1 quadrillion of worldwide derivatives that are under water and banrupting the world?
---------- "Everything predicted by the enemies of banks, in the beginning, is now coming to pass. We are to be ruined now by the deluge of bank paper..." Thomas Jefferson to Thomas Cooper, 1814. ME 14:61 2009-04-17 20:11:01
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Lemonaid Posts: 3513 Incept: 2008-01-20
Detroit Metro Online
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The banks win again, now that they've gutted the U.S. manufacturing sector they must move on to greener pastures which is wealth re-distribution via taxing carbon dioxide.
---------- "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." Ludwig von Mises 2009-04-17 20:18:46
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Gametracker Posts: 262 Incept: 2008-03-07
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Quote:The banks win again, now that they've gutted the U.S. manufacturing sector they must move on to greener pastures which is wealth re-distribution via taxing carbon dioxide. if we don't exhale do we still have to pay? ---------- "Everything predicted by the enemies of banks, in the beginning, is now coming to pass. We are to be ruined now by the deluge of bank paper..." Thomas Jefferson to Thomas Cooper, 1814. ME 14:61 2009-04-17 21:12:27
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Lemonaid Posts: 3513 Incept: 2008-01-20
Detroit Metro Online
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Quote:if we don't exhale do we still have to pay? Yes, through the estate (death) tax ---------- "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." Ludwig von Mises 2009-04-17 22:50:33
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