GM board hasn't ruled out bankruptcy as an option

[Truth Teller]

Source: Detroit Free Press

The board at General Motors Corp. has reviewed the possibility of bankruptcy, even as the cash-strapped automaker pursues congressional aid to help it survive the global credit crisis and the worst automotive sales environment in 25 years.

GM spokesman Tony Cervone acknowledged today that the board has examined the possibility of bankruptcy as an option the automaker may need to pursue should it not receive its share of a $25 billion low-cost loan package the Detroit automakers are seeking from Congress.


“The board has a fiduciary responsibility to review all options, and it has,” Cervone said.


But the board, like management, “doesn’t view that (bankruptcy) as a viable solution,” he said.




Read more: http://www.freep.com/article/20081122/BUSINESS01/81122047

[saigon68]

1. They are going to "BUST THE UNION"

Just wait and see

[Demeter]

2. Then They Will Bust Their Money Machine

These bozos should be stripped of their power before they do us all an injury.

Like that will happen, right? Hey Nancy, is the table set yet?

[Phred42]

9. That is exactly what this has been about.

The Reich's final gift to itself.

The Dems would need to step up and show some balls. We're Screwed.

[goforit]

10. Yep!!! This has been planned for 10 years. Employ overseas and bust US workers.

So much for buying GM/Ford/Chrysler.

I bought 2 hybrids because I got sick of giving money to the Oil Companies and
I absolutely refuse to buy an American made car ever (not from this present Co.),
unless it is a new start-up Company here in the US.

[Sen. Walter Sobchak]

3. GM can't afford Chapter 11 without a "bailout"

GM going through a Chapter 11 re-organization would take 4 or 5 years and cost atleast a billion dollars, and they will never be able to obtain debtor-in-possession financing on the open market.

[Truth Teller]

4. A billion dollars?

In the game we're talking about, that isn't much money, is it?

[medeak]

5. GM of the three has made the greatest efforts imo n/t

[54anickel]

6. Would sort of put a pinch on sales, wouldn't it? I mean, I don't think I'd be willing to buy a GM

product with the cloud of uncertainty hanging over the warranty. :shrug:

[excess_3]

7. bankruptcy ... best option for workers . n/t

[russspeakeasy]

8. We just gave the banks 750 billion ...banks make loans,

or they are suppose to... Let the big 3 go to the banks and
fill out an application...OH!...not credit worthy???? It's
called reorganization....Chapter 11 style....This situation
didn't happen overnight...they can't afford a planning
committee??

[Phred42]

11. And here is the GUN that the Reich has to our heads

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4515464&mesg_id=4515464

[Dover]

12. ..

GM and Chrysler say those companies could run dangerously low of operating cash by the end of the year and need assistance to survive the economic downturn. They argue that bankruptcy is not a viable option because consumers are unlikely to purchase vehicles from an automaker in bankruptcy and because -- in the current credit crunch -- reorganizational financing is not available.

In essence, they say, filing for bankruptcy in today's economic environment would not be a way to reorganize, but would essentially result in liquidation of the company.

Still, congressional leaders said they weren’t yet convinced that the Detroit automakers have demonstrated exactly for what they need the money and requested business plans from each of the automakers by Dec. 2 before the leaders call a vote on the matter. If the plans are convincing, congressional leaders said, they would hold more hearings on a domestic auto loan bailout program the week of Dec. 8.

[Dover]

13. Obama low key but active in auto rescue

http://www.freep.com/article/20081122/BUSINESS01/81122026

[FarCenter]

14. Bankruptcy may be an inevitiability, not an option

If creditors demand payment, and GM can't deliver the cash, GM goes into bankruptcy.

GM doesn't control the situation; its creditors do.

[pampango]

18. If you can't pay your bills, it's an "option" voluntary or not.

If we decide to pay their bills for them for a while, I hope that we insist on changes in the industry's way of doing business, so that we are not paying their bills again in 6 months, 12 months when a "crisis" reoccurs.

[sarcasmo]

15. Bust the union is right, and it looks like that is the route they are going to take.

[bulloney]

16. And if they bust the union, what will become of the retirees' pensions and health care?

Will those contracts be voided? If so, can you imagine the economic convulsions that would create? You would have a huge number of people suddenly scrambling to compensate for the pensions they had been dependent on. How would they do this?

This would be the linchpin that throws this country into the next Great Depression. I'm hearing more and more people talking about how close we are to having one. With the sheer number of people directly or indirectly tied to the auto industry, pulling pensions and health care out from these people would set off the next depression.

[sarcasmo]

17. I believe that a Bankrupt GM will turn our 9.5 percent unemployment here in Michigan into

15 to 20 percent and throw at least us and Ohio into Depression numbers, maybe the rest of the country.