Wednesday April 08, 2009

GM said to speed bankruptcy plans

This article belongs to the GM, Ford and Chrysler bankruptcy watch story arc.

bloomberg.com :

General Motors is speeding up preparations for a possible bankruptcy filing even as directors seek deeper savings this week to avoid that outcome, people familiar with the plans said. The bankruptcy readiness focuses on forming a new company from GM's best assets if necessary. The discussions center on how to go beyond GM's proposal to slash debt by 46% and shed 47,000 jobs in 2009. With bondholders and the United Auto Workers balking at concessions, a push for more savings makes bankruptcy more "probable," CEO Fritz Henderson has said. President Obama gave GM 60 days to restructure, without specifying what steps were needed to stem $82 billion in losses since 2004.

- As GM accelerates towards the brick wall of bankruptcy ahead, one has to wonder what lies beyond that point. From a distance, and indeed way ahead of time, it was actually not too hard for the peakoiler community, and some others, to predict the crash. What could be harder is trying to predict what happens afterward. It would be unfortunate if the community has to start quoting Dmitry Orlov as a reference. At best, GM emerges diminished but much more stable. At worst, we start talking Stage 3. This kind of thing, it usually turns out somewhere in between, but you never know.

See also :

1. GM share price target cut to zero by Deutsche Bank
2. GM collapse could cost $200 billion in bailout, 2.5 million jobs lost
3. GM, Chrysler may go bankrupt after Senate rejects auto bailout plan as talks collapse
4. Report: GM mulling bankruptcy
5. GM warns of bankruptcy risk

(2009-04-08 00:06:41 SGT) [Biz] Permalink

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