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From Reuters dated 5-18 at 6:19 pm EDT
GM bankruptcy seen as all but inevitable
The points that caught my eye:
It really looks like to me that no one that GM needs to have work with them is willing to. The UAW is playing a game of chicken with GM that is going to have a major negative impact. Bondholders I think are hoping for a better deal from bankruptcy court than GM can give them outside it.
I think it might be time to think about moving out of Michigan, because I think things are going to get really bad here.
GM bankruptcy seen as all but inevitable
The points that caught my eye:
...The battery of problems to have hit GM range from plunging sales and declining share to a line-up that has seen more misses than hits over the past decade and that trails engineering leaders like Toyota Motor Corp and Honda Motor Co in hybrid technology....
...GM's offer to its bondholders would give them only a 10 percent equity stake in a reorganized company. Representatives of a committee representing major bondholders have called that offer unfair given the payout being offered to the UAW.
In a sign of how far apart the sides remain, bondholders have sought a majority stake in the new GM, the controlling position in a new and smaller auto company GM has offered to the U.S. Treasury...
...Underscoring the divisions between GM and stakeholders, the UAW on Monday repeated its opposition to a GM restructuring plan that includes closing 16 U.S. plants...
...But Chrysler was helped by having Fiat as a buyer waiting on the other side of its reorganization. It is unclear what entity would buy GM's assets if U.S. officials run its reorganization by the Chrysler play book, analysts said.
It really looks like to me that no one that GM needs to have work with them is willing to. The UAW is playing a game of chicken with GM that is going to have a major negative impact. Bondholders I think are hoping for a better deal from bankruptcy court than GM can give them outside it.
I think it might be time to think about moving out of Michigan, because I think things are going to get really bad here.