The fallen icon of American industrial might will rely on $30 billion of additional financial assistance from the Treasury Department as it reorganizes. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.This is absolutely stunning madness. The leadership of the USA (and Canada) do not know what they are doing.
GM will follow a similar course taken by Chrysler LLC, which filed for Chapter 11 protection in April and hopes to emerge from its government-sponsored bankruptcy this week.
The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United Auto Workers getting a 17.5 percent stake and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.
Monday, June 1, 2009
50 Billion Smackeroos Buys You...
60% of a bankrupt car company.
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I guess the Brits must be having a jolly good laugh over this one. England did the exact same thing with Leyland Auto Company. Tally-ho!
ReplyDeleteNews Flash! GM just declared bankruptcy this morning.
ReplyDeleteHmmmm, I wonder how many more billions will GM need?
Perhaps Jim Balsillie can move the Wings to Hamilton.
More news!
ReplyDeleteGM has been removed from the Dow Jones Industrial average.
GM stock will also be removed from the NYSE, and start trading on the Pink Sheets.
GM on the Pink Sheets!!!! The world as you knew it, is over.