Reply #30: Chapter 11 [View All]

[quaker bill]

does not put GM out of business. It wipes out the all bond and stockholders who will not come to the table and deal. If they will take a settlement, likely 10 cents on the dollar, then they do not get wiped out completely. Those who will not settle, will likely come out of this with very nearly nothing. Perhaps nothing and a large legal bill.

The unions have taken a haircut, many of the bond holders have taken a haircut, most of the stockholders have seen their holdings vanish. There are a apparently a just few left who think they can do better in court. As with Chrysler, they will very quickly find out otherwise. Did you note just how quickly this went? This is the nature of the threat, cut us a deal or we will go to a judge and wipe you out, and we will do it quickly with little chance of your argument being heard.

This administration does not play. They told the Chrysler guys the same thing. Some did not believe they could be done in this promptly and efficiently. They found out otherwise.

GM will remain in business, and we will hold around 60 to 70 percent of it for a time. Those who will not play, will get burned. Sooner or later, the investor class will learn that there is a new cop in town.