GM: Bankruptcy "more probable"

No surprise here, unless of course you faithfully followed the advise of your stock broker purchasing stocks of GM on the diluted - naive and at times fanatical perception that there would be some miraculous economic recovery later this year, in which case reality and sound logic is utterly void and simply incomprehensible to you.

What perplexed me is the alleged corporate movement from out of Detroit, however moving out of Detroit will not mitigate legal and financial obligations, unless of course GM follows the lead of Large credit card companies and move it's corporate location in Delaware which have much more favorable legal opportunities in which to file for bankruptcy.

Perhaps Delaware, but more surely any state that will offer a more flexible and expedient bankruptcy proceedings while mitigating lawsuits from numerous debt holders.

Unless there is another global war, it is unlikely that GM can sustain itself with it's current business model.

"GM has until June 1 to reach deals that would slash debt owed to bondholders and the United Auto Workers union and to win concessions from the union that would cut operating costs for its remaining U.S. plants under terms set by the Obama administration's autos task force."(C-1)

Text Source (C-1)
www.cnbc.com
http://www.cnbc.com/id/30682967
GM CEO: Bankruptcy Likely; Firm May Leave Detroit
By: Reuters | 11 May 2009 | 01:55 PM E

Video Source . REUTERS REUTERS.com
http://www.reuters.com/news/video?videoId=104474
(01:43) Report

May 11 - General Motors concedes it might not be able to restructure by the June 1 deadline -- while the Dow loses 150 points due to profit taking and bank sector worries.

Manoush Zomorodi reports.

Category:

News & Politics

Tags:

• GM
• Bankrutpcy
• Fritz Henderson
• bondholders

[gchand7]

From these post I'm glad to see some Americans that have some sense! Makes you wonder how this moron got elected??? NO MORE BAILOUTS! Let these UNIONS die.

[tachikoma747]

GM has been creating inferior vehicles and selling out to the bloodsucking UAW since the mid 1970s and now its finally biting them in the ass. This isn't the first time GM almost died. Remember 1991? Buy a Ford or a Japanese car. They haven't sucked the taxpayers dry like Chrysler, GM or our intrepid president. And Obama tells the GM shareholders that they MUST take 10 cents on the dollar of their shareholdings when GM sells its assets. The arrogance of this man!

[DavidAKZ]

Never mind, the banks and lawyers will 'laugh all the way to the bank' with fees generated by Chapter 11 proceedings. See Frontline - 'Inside United's Bankruptcy'. TARP licking good !