General Motors Restructure

[clayinaustin]

GM Goes For Broke

GM will issue new stock to pay its debts to the Federal Government and the Unions. Between them, Treasury and the unions would own 89% of GM.

If you own GM stock, be prepared for a serious dilution!

 

[clayinaustin]

Oh yeah... GM also confirmed reports that surfaced Friday and officially announced plans to drop its Pontiac brand altogether.

 

[RLJ676]

I did some real quick and dirty math, and based on our current market cap, I think that the shares are worth 2-3 cents each now. Under this plan the current stockholders would now own 1% of the equity!

 

[Ratickle]

It is a terrible plan. My guess is it won't be approved and bankruptcy will follow.

 

[RLJ676]

It is a terrible plan. My guess is it won't be approved and bankruptcy will follow.

Terrible for who? For the bondholders.....yes. The company and everyone else, not as much.

However, the bondholders aren't likely to get better in court. The gov't is the one who's limited them to 10% equity in the swap.

GM will be in great shape balance sheet and structure wise if this plan happens.

 

[Expensive Date]

It is a terrible plan. My guess is it won't be approved and bankruptcy will follow.

I doubt that it sets a dangerous precedent for the pensions.If they go into bankruptcy they walk away from the pensions you will see more company's doing it then.

 

[Ratickle]

I doubt that it sets a dangerous precedent for the pensions.If they go into bankruptcy they walk away from the pensions you will see more company's doing it then.

They walk away from the pensions in excess of $54,000 per year.

 

[2112]

I hope they don't offload Saturn to the Chinese (what I read) I have been eyeballing a Sky Redline for the wife. My part to help the American economy. :leaving:

 

[Ratickle]

Terrible for who? For the bondholders.....yes. The company and everyone else, not as much.

However, the bondholders aren't likely to get better in court. The gov't is the one who's limited them to 10% equity in the swap.

GM will be in great shape balance sheet and structure wise if this plan happens.

For all. The government will have to support a company which is modeled as a loser forever with our taxes. There is no way they will ever be competitive again.

 

[Ratickle]

I doubt that it sets a dangerous precedent for the pensions.If they go into bankruptcy they walk away from the pensions you will see more company's doing it then.

Like United did?

 

[Sunsation96]

I hope they don't offload Saturn to the Chinese (what I read) I have been eyeballing a Sky Redline for the wife. My part to help the American economy. :leaving:

I thought the same thing a few weeks back. My wife and I were in the need of a new car and living just 20min outside of Detroit I thought good time to support my family and friends. So we bought a new Pontiac G8 love the car then GM is getting rid of Pontiac after 83 years. I am kind of upset about this news nothing I can do.:ack2:

 

[catmando]

I hope they don't offload Saturn to the Chinese (what I read) I have been eyeballing a Sky Redline for the wife. My part to help the American economy. :leaving:

Two years ago I test drove an Aura XE for my wife it was awesome. Sirius radio, F1 paddle shifters, 255hp. She didn't buy it. :boxing_smiley: :dupe:

 

[boatme]

My wife just got a new G6 one month ago

I hate to see the line go but tis the way that it is

we tossed GM big money and they will banko anyway I said that would happen months ago

they shoulda let them banko a year ago instead of proping them up to fail later

I still want to know when we are going to hold the banks feet to the fire

Banks are now enemy number 1 (lawyers are enemy number 2)

 

[Ratickle]

My wife just got a new G6 one month ago

I hate to see the line go but tis the way that it is

we tossed GM big money and they will banko anyway I said that would happen months ago

they shoulda let them banko a year ago instead of proping them up to fail later

I still want to know when we are going to hold the banks feet to the fire

Banks are now enemy number 1 (lawyers are enemy number 2)

I'd still put politicians first.....

 

[boatme]

I'd still put politicians first.....

Most Politicians qualify for enemy number 2 since most are liars opps i mean lawyers

Maybe we make the politicians and the banks Jointly number 1 public enemy

 

[Ms PatriYacht]

hard to believe that the Pontiac name will be history, my last three cars have been Pontiacs, I also have the G6 and so does my sister. GM will only be left with one mid priced car brand now, Chevy. I am pretty sure Saturn is one of the brands they want to dump, along with 21,000 more employees With each of these mass layoffs, my house value and chance of selling it takes another dive, so much for our lakefront investment.

 

[Ms PatriYacht]

Most Politicians qualify for enemy number 2 since most are liars opps i mean lawyers

Maybe we make the politicians and the banks Jointly number 1 public enemy

The politicians and the tree huggers are our countries worst enemy now. During the last couple of decades their agendas and policies have forced manufacturing out of the United States. The auto industry (including all their suppliers) are really the last of the large industries left in our country, I can't fathom what will take it's place that will give people a chance to make a living that will pay them enough to afford a modest house. The government seems to think it is important for just about every kid to go to college, I keep wondering where all the jobs will be when they graduate.

 

[sledge]

Anybody miss Oldsmobile? It's not the end of the world. And we still build airplanes, helicopters, skyscrapers, and lots of other things in this country. And with union employees too!

You can still get parts, you can still get things covered under warranty. If it wasn't blasted over the TV day in and day out, you might not even notice. The economy sucks right now; it's happened before. It will get better eventually.

 

[Magic Medicine]

The politicians and the tree huggers are our countries worst enemy now. During the last couple of decades their agendas and policies have forced manufacturing out of the United States. The auto industry (including all their suppliers) are really the last of the large industries left in our country, I can't fathom what will take it's place that will give people a chance to make a living that will pay them enough to afford a modest house. The government seems to think it is important for just about every kid to go to college, I keep wondering where all the jobs will be when they graduate.

I have to agree.

 

[Airpacker]

How many kids with degrees in useless things like Poli Sci are very good at asking, " would you like to biggie size that order?" I guess we will find out in the coming decade.