Financing available through Obama National Bank. Excerpted from AP.... DETROIT (AP) - General Motors Corp. (GM) (GM) said it will cut 21,000 U.S. factory jobs by next year, phase out its storied Pontiac brand and ask the government to take more than half its stock in exchange for half of GM's government debt as part of a major restructuring that would leave current shareholders holding just 1 percent of the company. The struggling automaker said it will offer 225 shares of common stock for every $1,000 in notes held by bondholders as part of a debt-for-equity swap that aims to retire most of GM's $27 billion in unsecured debt. The announcements came in a filing Monday with the Securities and Exchange Commission. GM is living on $15.4 billion in government loans and faces a June 1 deadline to restructure and get more government money. If the restructuring doesn't satisfy the government, the company could go into bankruptcy protection. GM said it will ask the government to take more than 50 percent of its common stock in exchange for canceling half the government loans to the company as of June 1. The swap would cancel about $10 billion in government debt.
It doesn't look like the debtholders are very happy about this deal.....25 cents on the dollar or so. My guess is that they think they can get a better deal in bankruptcy court. Stay tuned.....
I read this as you don't really give a crap...just let em go. What a shame a great American brand like Pontiac is no more. I tire of the debate. If no one gives a damn then let's all drive Accords and Corollas.
On the contrary, I am outraged by this whole charade. We are sitting on our asses while our financial and manufacturing industries our being socialized by this modern day Karl Marx. I was making light of it to illustrate the point. Your GM stock is worthless. The US Government will now be the majority stockholder. 21,000 more workers hit the street. GM is soon to be a government entity. By the way, I used to own a '66 GTO so I do feel the pain.
So....you recommend they just go belly up and liquidate? Or....every American is forced by law to mail in a $100.00 check apiece to GM? Bankruptcy and possible liquidation are the most inevitable courses if GM and Chrysler had received no bailout monies. I'm not sure what you think should be different except maybe they should get at least say 1/3 of what the banks got with no questions asked....like the banks.
That must have been before my lifetime since every single person who has ever owned a Pontiac that I've personally known (including my mother) would be the first to tell you that they were a gigantic piece of dung that just sapped thousands upon thousands of dollars from them in repairs. The only thing remotely awesome about Pontiac (sans the GTO) is the joke regarding the acronym that my buddy Mookie told me about long ago....
Correct me if I'm wrong but didn't GM and Chrysler already receive bailout funds? And are they not looking for more? and are they not both very good bets to file Ch. 11 in spite of this? GM is asking to be absorbed by the Feds, are they not?
They have received about 15 billion....combined...total....so far. A paltry sum compared to the financials. Can you imagine how fast they might rebound if they received 10% of what the financials got....say about 70 billion? And couple that with someone actually forcing the banks to make leases and car loans? These guys would be skyrocketing in that scenario.
Your view of what goes on in the world has been and continues to be some bizarre fiction of your own creation aided in part by lib/dem talking points and other sources of populist rhetoric.....in other words not remotely close to reality. Carry on.....
BT....70 billion...10% of the Wall Street sum..... ...and you contend without doubt that the auto companies couldn't get it done with that kind of cash? Really......? Man you are one smart MFER if you know that for certain....wow! Don't EVER let me question your infinite wisdom!!!!!
No.....I contend that your view of what goes on in boardrooms and executive suites around the country and on Wall Street is sheer fantasy of your own creation aided in large measure by what you've heard and read from lib/dem/socialist bloggers.....none of which is remotely close to the truth but that has never stopped you before nor do I expect that it will now. Carry on....
http://www.usatoday.com/money/autos/2009-04-27-gm-bond-proposal_N.htm Let's review some simple arithmetic..... US Government = for a $20 Billion investment they get 50% of GM UAW = for a $10 Billion investment they get 39% of GM Bondholders = for a $27 Billion investment they get 10% of GM Existing Owners = get 1% This little exercise says it all......for $30 Billion the government and labor get 90% of the company. For a like investment, the bondholders and existing owners get 10%.......a classic case of where this administration is taking this country. Hasn't organized labor fleeced this company and the US consumer enough? If this gets strong-armed through, which is still in doubt to be sure, consider the future implications and cost of trying to raise capital across our system......rational investors will not part with their capital without the expectation of adequate compensation for their risk.....
Man, that's an eye opener BT. I hear we will all be issued grey Nehru suits to wear within a couple of years. Calisthenics at dawn.....
....that's a CEO that knows which way the wind is gonna blow for at least the next 3 years. Do you think that it's a coincidence that he was the administration's chosen successor to Waggoner???? Further, that Obama would not be in the White House without the efforts of organized labor. Payback time for sure thank you very much...... Shortsighted to be certain and unintended consequences contrary to the best interest of our nation and way of life.......consider if you will for one second the crackerjack of efficiency and effectiveness a GM will be controlled 90% by the federal government and organized labor.....investors no doubt will be lining up at the door - recall after having been so badly pi$$ed on to boot - to provide risk capital for an enterprise with such a bright future .....good luck with that one. :shock: