Gm Looks For Quick Sale To Govt

MattSD · May 19, 2009

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

GM shares were up about 9 percent at $1.29. (Editing by Gerald E. McCormick)

VMax2007 · May 19, 2009

sleblanc63 · May 19, 2009

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale ...

The board of the new company would be established with the tacit approval of the government. OBAMA, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

FIXED

ryan_hermanutz · May 19, 2009

tobias · May 19, 2009

P71_CrownVic · May 19, 2009

I second that...unless somebody posts something OFFICIAL...then these speculation threads should be locked.

rvsahs · May 19, 2009

MoonShine Racing · May 19, 2009

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

GM shares were up about 9 percent at $1.29. (Editing by Gerald E. McCormick)

Rest assured I have bought my last GM vehicle. And now today Obama is telling GM what kind of vehicles to build. Silly me I thought the market did that.

BuckFeverZ · May 19, 2009

I wanna go off on tangent here, but I'll refrain from such activities right now

Draenor · May 19, 2009

Dont forget.....

my fav.

ryan_hermanutz · May 19, 2009

So this morning I got a call at like 4:45am. It was a long distance call from a 202 area code. I didn't know who it was so I didn't answer the first call. But they called back like 30 seconds after it stopped ringing. So I figured it must be important so I answered it. At first I thought it was a joke, but it was President Obama. He said “Ryan it’s time to get up.” So I got up, and I was like, who is he to tell me what to do, Fwon it I’m going back to bed. But then he called me back and said “Get up; you need to take a shit.” So I got up.

Norseman · May 19, 2009

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

GM shares were up about 9 percent at $1.29. (Editing by Gerald E. McCormick)

Rest assured I have bought my last GM vehicle. And now today Obama is telling GM what kind of vehicles to build. Silly me I thought the market did that.

Yup, if it has come down to buying an Obama-mobile then the 2 I have now will be my last. I hate saying that but I will not buy a car from Obama Inc. !!!!!!

VMax2007 · May 19, 2009

MattSD · May 19, 2009

Seriously, this is what happens when someone tries to post some new info on Obama's take over of GM. Geeze you boys are harsh

VMax2007 · May 19, 2009

Sieriously, this is what happens when someone tries to post some new info on Obama's take over of GM. Geeze you boys are harsh

Yeah, and if the gov't didn't get involved and GM went bye-bye, then every other thread would be people pissing and moaning that the gov't allowed it to happen.