- The Obama Motor Co.
- 'New GM' Products Face Triple Market Challenge
- What's GM worth?
- GM Filing Pits UAW Against Investors
- GM’s Bankruptcy Plan Wins Support From Majority of Bondholders
- Germany Picks Magna to Buy Opel; 11,000 Jobs May Go
- Auto Suppliers Brace for Blow of GM Bankruptcy
- Chrysler Judge Plans to Rule June 1 on Asset Sale to Fiat Group
- Opponents of Chrysler Sale Fight to the End in Court
The Obama Motor Co. - Wall Street Journal
Back in December, in an economy far, far away, then-CEO Rick Wagoner tossed out the scary cost to taxpayers of $100 billion if General Motors wasn't saved by the government. Well, GM was saved in December and again in March, and as early as today the feds will rescue it a third time in a prepackaged bankruptcy that is already costing at least $50 billion, and that's for starters. Welcome to Obama Motors, and what is likely to be a long, expensive and unhappy exercise in political car making.
Taxpayers have so far put up nearly $20 billion, which was supposed to be a loan at market rates but under Treasury's forced restructuring will mostly be converted into equity in the new GM. The feds are also putting up $30.1 billion in "debtor in possession" financing and will effectively nationalize the once-mighty auto maker by taking roughly 60% ownership. (That's not counting $12.5 billion to save GMAC, the company's financing arm.) The Canadian government will go along for the ride for 12% of the new GM, the UAW will get about 17.5%, and the hapless bond holders have to settle for 10%......
What's GM worth? - CNNMoney
Once the bankruptcy process at General Motors plays itself out, what will the company be worth?
It's more than an academic question of interest only to Wall Street traders. It will determine how much money taxpayers can expect to recoup from multiple bailouts of GM. When all is said and done, the Treasury Department is likely to pump more than $50 billion into GM (GM, Fortune 500) -- including loans made to the automaker last year.
It is also key to determining the level of future health insurance benefits for hundreds of thousands of GM retirees and how much money holders of $27 billion on GM bonds, including pension funds and individual investors, will be able to recover.....
'New GM' Products Face Triple Market Challenge - Wall Street Journal
The "new" General Motors Corp. (GM) created by the U.S. government will enter a global marketplace dominated by falling sales and toughening fuel economy standards, as well as the specter of gas prices that are once again on the rise.
The old GM failed to adapt to any of these factors, and the repayment of taxpayers in the U.S., Canada, Germany and elsewhere hinges on leveraging a repaired balance sheet and lower cost base into profitable car sales.....
GM Filing Pits UAW Against Investors - Washington Post
The Obama administration plans to take the next step in its efforts to resuscitate the American auto industry, sending General Motors, the storied manufacturer, into bankruptcy protection this morning.....
The Obama administration plans to take the next step in its efforts to resuscitate the American auto industry, sending General Motors, the storied manufacturer, into bankruptcy protection this morning.....
GM’s Bankruptcy Plan Wins Support From Majority of Bondholders - Bloomberg
General Motors Corp., poised to file for bankruptcy tomorrow, and the U.S. Treasury got a majority of bondholders to agree to a revised reorganization plan for the largest U.S. automaker.
About 54 percent of the investors, or 975 institutions, backed the swap of debt for equity and warrants, Elliot Sloane, spokesman for the bondholders’ ad hoc committee, said today. He said the final total may be less due to overlap between those taking GM’s first exchange offer and those backing this version.....“The bondholders essentially have the power to tie this thing up in bankruptcy and disagree, so it’s a much smoother process if you have the major stakeholders all in agreement going into the bankruptcy,” said Len Blum, managing director at investment-banking firm Westwood Capital LLC in New York. “The quicker the better, in terms of bankruptcy.”....
Germany Picks Magna to Buy Opel; 11,000 Jobs May Go - Bloomberg
German Chancellor Angela Merkel’s government chose Magna International Inc. as the buyer for General Motors Corp.’s Opel and confirmed a financing plan aimed at helping the money-losing unit avert insolvency.
Magna, the Canadian car-parts maker that’s competing with Fiat SpA in its bid for Opel, will invest in the Russelsheim, Germany-based carmaker, Finance Minister Peer Steinbrueck said at 2:13 a.m. in Berlin after a meeting with leaders including Merkel. Germany will provide a 1.5 billion-euro ($2.1 billion) loan to keep Opel afloat. Officials said as many as 11,000 jobs may be lost across Europe, including 2,600 in Germany.....
Auto Suppliers Brace for Blow of GM Bankruptcy - Washington Post
Auto parts suppliers, pummeled by the global slump in vehicle sales, will soon face a new menace to their survival: General Motors' bankruptcy.
GM is likely to file for Chapter 11 bankruptcy protection on Monday. And suppliers could suffer if the automaker, following Chrysler's example, slashes more production by shuttering plants until it emerges from court.
GM shares more than half of its 1,500 North American suppliers with Chrysler and Ford, according to CSM Worldwide......
Chrysler Judge Plans to Rule June 1 on Asset Sale to Fiat Group - Bloomberg
Chrysler LLC may find out June 1 whether it can sell most of its business to a group led by Italy’s Fiat SpA in a deal intended to restart the bankrupt automaker’s idled manufacturing plants.
U.S. Bankruptcy Judge Arthur Gonzalez said yesterday at a court hearing in Manhattan that he will issue an opinion on the proposed sale “sometime Monday.”
More than 300 objections were filed to the sale, though most were withdrawn or resolved. Objections from attorneys representing some of the 789 car dealers who had their contracts rejected by Chrysler and from a group of Indiana state pension and construction funds still stood.....
Opponents of Chrysler Sale Fight to the End in Court - Washington Post
Lenders and dealers opposing the government-orchestrated sale of Chrysler to Italian carmaker Fiat made one last plea before a bankruptcy judge on Friday, arguing that their rights had been trampled on as the case progressed through court with lightning speed.
Some of the opponents implored Judge Arthur J. Gonzalez to delay the sale, even as Chrysler has argued that time was critical to the automaker because it was losing value every day it lingered in court. At around 9:15 p.m., the last of the stakeholders presented their closing arguments. Judge Gonzalez said he would issue his ruling Monday.
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