GM in *intense* preparations for bankruptcy
GM preparing to split the company in two, with a new, leaner GM made up of its more successful brands emerging
By Alex Ricciuti
April 7, 2009 11:43 PM
Filed Under: American, Corporate/Financial, General Motors, Industry
What may very well be the inevitable is upon GM and the company is finally acknowledging it. GM is preparing itself for bankruptcy.
According to Reuters, GM is currently conducting an "intense" and "earnest" effort to prepare for the possibility of a bankruptcy filing. Sources close to the troubled Detroit automaker report that GM is considering splitting the company in two, with a "new" GM made up of its more successful brands and operations, while an "old" company consisting of its unprofitable units is splintered off.
A new GM would become unburdened by the huge amount of unsecured debt held by bondholders (estimated at 27.5 billion US dollars), who would lose much of the value of their bonds in the event of a bankruptcy. The new company would still assume some creditor debt and other obligations currently on GM's books, depending on the arrangement reached in the bankruptcy proceeding.
GM's new chief executive Fritz Henderson says he still hopes to spare the company from bankruptcy and restructure without it. But upon becoming CEO recently, Henderson said he would be ready to do it if it became necessary.
Related Articles
- GM resurrection today (18 comments
- Crucial GM asset sale approved by judge (2 comments
- GM Announce Preliminary Agreement To Sell HUMMER to Mystery Buyer (20 comments
- GM Files for Chapter 11 Bankruptcy (11 comments
- GM to Close 1100 Dealers (30 comments
Comments
Edited by user on April 8, 2009 at 4:02 AM
Edited by user on April 8, 2009 at 7:10 AM
1)I'm not American 2)Don't worry about the punctuation and grammar - you'll learn that when you hit grade 5.
Add Comment
- JE Design Seat Leon FR Details Released
- Next Generation 2011 BMW M5 F10 Further Details
- Australian Skelta Racer Now Available in Europe
- VW Jetta TDI Cup Street Edition Announced (US)
- Hofele VW Touareg Royster GT 460 Widebody Introduced
- Shelby F-150 Super Snake Concept Unveiled
- Renault to Produce EV based on Twizy Z.E. Concept in Spain
- Ford Introduces First Inflatable Seat Belts [Video]
























Long life Volkswagen and Toyota. :)