REPORT: General Motors in "intense" bankruptcy preparations

Mook

El Presidente
Admin
Joined
May 23, 2007
Messages
165,287
Reaction score
3,019
Location
Elgin
According to an unnamed source speaking with Reuters, General Motors "is in 'intense' and 'earnest' preparations for a possible bankruptcy filing." The report states that GM could be split into two separate entities; one "new" unit consisting of the General's successful brands (read: Chevrolet and Cadillac) and an "old" unit made up of its less-profitable endeavors (Hummer, Saab, Pontiac and Saturn).

If the plan is enacted, the all-new GM would assume some of the debt from the bankruptcy (primarily, unsecured debt) and that GM's bondholders would lose a substantial amount of value if the Chapter 11 filings go through. Naturally, neither source wished to be named, so this is all conjecture at this point, but if GM does declare CH11 within the next month-and-half, expect the Feds to step in to avoid the cataclysmic effect on both suppliers and the economy as a whole.
 

Eagle

Nemo me impune lacessit
Super Moderator
Joined
Mar 1, 2008
Messages
62,584
Reaction score
109
Location
Woodsticks, IL
This story is all over money.cnn.com too. :( I just hope they come out of this deal able to remain a solid American auto manufacturer.
 

Mickey

Look at those low rates!
Joined
Feb 13, 2008
Messages
3,008
Reaction score
0
Location
Normal, IL
God, I would have thought Pontiac was one of their more successful brands. Pontiac and Cadillac are the only two GM brands I would consider.
 

OffshoreDrilling

This is my safe space
Donating Member
Joined
Aug 28, 2007
Messages
29,231
Reaction score
300
Location
Chicago
If it takes some trimming to keep GM around, Im all for it. Its a shame such a historical American corporation is struggling this badly.
 

Alacran

GM fanatic
Joined
Jan 18, 2009
Messages
1,120
Reaction score
0
Location
Chicago
I thought the G8 was selling well. I would hold on to the G8, Aura, and Sky. Flush everything else down the toilet.
 

Smoke

Well-known member
Joined
Feb 11, 2009
Messages
632
Reaction score
0
Damn. It was inevitable, as Agent Smith would say.....
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Top Bottom