GM Bankruptcy Possible

A bankruptcy filing could be in the near future for General Motors, which is already operating under more than $13 billion dollars in emergency U.S. government loans.

According to the New York Times, the Treasury Department is directing GM to lay the groundwork for a bankruptcy filing by June 1st.

The White House autos task force has already given GM 60 days to come up with a restructuring plan and is trying to determine whether the automaker can be a viable company and continue to receive government aid.

John Casesa is an auto analyst at the Casesa Shapiro Group.

[John Casesa, Casesa Shapiro Group]:
"It's highly unlikely that a company of this size and complexity can restructure itself or even develop such a plan to avoid bankruptcy in 60 days. So the signal Washington's sending is that we'll probably go to court to hammer this out and that's what bankruptcy is all about-- reorganization with a judge to make those decisions."

Shares of General Motors plunged Monday on the belief that it will be difficult for GM to win sweeping concessions from both bondholders and the United Auto Workers union -- making bankruptcy very likely.

[John Casesa, Casesa Shapiro Group]:
"Well a new GM will be a much smaller company - probably half the number of brands it has today, far fewer dealers, far fewer factories and with a much more competitive cost structure."

Although General Motors and the White House refused to comment on the New York Times story, sources familiar with the situation told Reuters that GM was in what was termed "intense" and "earnest" preparations
for a possible bankruptcy filing.

The U.S. government has guaranteed the warranties on all GM vehicles -- even if the automaker files for Chapter 11.

Category:

News & Politics

Tags:

• ntd
• GM
• General Motors
• bankruptcy
• White House
• automaker
• government aid
• world financial crisis

[TheLifeImprovement]

This video is pretty interesting, does that make me a nerd? We might be able to work together. I help people who have file bankruptcies get a cash settlement

[FeralTurtle]

Funny, so many beligerent people with no real knowledge on this matter... Talking out of their asses. Its fun to see how fast society criticizes and belittles a situation like this. No one talks about Porsche being on the brink of financial breakdown, or Toyota posting record losses... go home people, stop whinning, maybe thats why we have these problems in the first place.

[janebusby]

Why are so many Americans so anti-socialist ideas?

Doesn't it mean anything to you that each Cuban spends $251/year on socialist healthcare which achieves better results than Americans get when they each spend $7000/year on theirs!??

Not only do Cubans not go homeless from healthcare bills, but everyone gets the help they need, they don't have to argue with insurance companies when they're in critical health and their mortality rates and life expentancies are higher.

Let Obama take GM!

[crxpro1]

pos boy hahah dont be mad cause gm is gay hahah

[nowhiteflaginiraq]

GM..Which can now officially be referred to as "Government Motors" has 60% of it;s stock owned by the government. This means that we, the American Taxpayers ore 60% owners of this company. We deserve a right on how this company is run, who runs it and we all deserve a portion of the stock dividends to pay us back for our portion of the stimulus pork that was wasted when GM filed bankruptcy!

I just bought another Ford ( FUCK OUR RIDICULOUS DEMOCRATS)!

[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!

[tachikoma747]

"A Democracy ensures that the people are governed by no better than they deserve."- George Bernard Shaw

[MagicMan2475]

Buy a Beamer (BMW) Those are nice!!

[MagicMan2475]

Thank you for being smart, have you noticed that we are becomming more capitalistic now (E.g. Obama taking 60% of GM) He also closed Guantanamo, and fucked us up with the stimulus, dont you love the American people for voting for this guy...

[nowhiteflaginiraq]

Thank You President Obama for putting a debt on the American Taxpayers that will now never be repayed because of the bankruptcy filing by GM and Chrysler.

But go ahead, keep telling the media to encourage U.S. citizens that the economy is getting better.

Plus, I thought it was G.W. Bush that was Mr. Big Oil. Why is that the barrel prices are going down but the pump prices are going up. But hey, at least gas isn't $4 a gallon right?!!