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GM considering Chapter 11 filing, new company: report

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posted on Feb, 14 2009 @ 02:59 PM
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GM considering Chapter 11 filing, new company: report


www.reuters.com

CHICAGO (Reuters) - General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."
(visit the link for the full news article)




posted on Feb, 14 2009 @ 02:59 PM
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Given the seemingly dire state of the US automotive industry wouldn't it be better to try to roll both GM and Ford into one company? if this were to happen then although it would lead to a lot of job losses (these will undoubtedly happen anyway) but they would have a leaner company that could concentrate on fighting the imported car companies from Asia instead of fighting between themselves?

www.reuters.com
(visit the link for the full news article)



posted on Feb, 14 2009 @ 04:08 PM
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Let me get this straight...

GM HAD to have bail out money, because bankruptcy was not an option. Now that it's time to present a viability plan to the government, baankruptcy is an option? I thought they said nobody would buy their vehicles if they were in bankruptcy. How are they going to explain this reversal?



posted on Feb, 14 2009 @ 04:29 PM
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I have a question too. What will filing bankruptcy and forming a new company do with regard to the bailout money they received? Will they still have to repay it? Or will it be a debt that gets erased?



posted on Feb, 14 2009 @ 04:39 PM
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Charter communication just announced bankruptcy. They are the only cable company in northern Nevada. Their press release said "It won't affect service" except for the price, of course. This is what will happen when GM begins operating under Chapter 11. Which is fine, no one will buy their crappy cars anyway.



posted on Feb, 15 2009 @ 02:53 AM
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Originally posted by Illusionsaregrander
I have a question too. What will filing bankruptcy and forming a new company do with regard to the bailout money they received? Will they still have to repay it? Or will it be a debt that gets erased?


If they are starting a new company then it will likely die with the old company, and any employee's wanting to work for the new company will have to sign new contracts that will be lower paid and less if any perks (health insurance ect) suppliers will have to sign new contracts which will mean having to supply parts at lower costs.....



posted on Feb, 15 2009 @ 05:02 AM
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Does anyone know if pensions will be affected? Also from what i understand they took that bailout money to move a good chunk of their operations for brazil. It's a pretty disgusting situation.



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