GM In "Intense" Preparations For Bankruptcy: Report

Reuters:

General Motors Corp is in "intense" and "earnest" preparations for a possible bankruptcy filing, a source familiar with the company's plans told Reuters on Tuesday.

A plan to split the corporation into a "new" company made up of the most successful units, and an "old" one of its less-profitable units, is gaining momentum and is seen as the most sensible configuration, said another source familiar with the talks.

Read the whole story: Reuters

Comments

[Counterglow]

I think the only thing they were waiting for was the warranty guarantee. With that, they can go into bankruptcy protection and screw their workers and retirees, then come out the other side pretty much intact. I'm pretty sure that's why Wagoner had to walk the plank. They have to create the appearance that upper management is taking a hit, too.

[LCLiberal]

The unions will howl if Obama lets GM fall into bankruptcy and he refuses to back card check. No money...

http://www.political-buzz.com/

[MuchMadness]

This is going to be a matter of waiting to see who blinks first. The government will be hoping that bondholders will accept a debt for equity swap to stave off a complete wipeout in bankruptcy. The bondholders will be hoping that congressional Democrats will pony up more money to avoid losing votes in Michigan, Missouri, and Ohio. All the while, GM will have to keep downsizing unless the government decides to save to keep it alive at its current size.

[VSamuels]

The general delusion that the GOP pushes when it gains power and authority and the exact same thing that Limbaugh and Hannity and Beck are still trying to pass on as 'virtuous' public policy has proven itself to be a cost that no longer can be afforded by America or the other Democratic nation-states. The fantasy 'world' that is the GOP simply can not acknowledge and own up to the realization that the economic option they represent is a theory that does not translate into everyday workable solutions because the government must balance 'the market' not because government is interested in its control and wishes to simply impose draconian rules, it does so for the same uncomfortable and [inconvenient to the GOP] reason: human nature is and will be to get away with whatever it believes it can when the rules so allow.

The GOP policies are then a failure, not just because they disfavor so many souls, but because they are dishonest and can not be trusted to be honorable as the so-called pure system would demand.

[sueinmn]

It's just a darn shame the banks weren't also forced to reorganize! They should be made to become more efficient, on our money!

[Paul]

GM has been in intense preparations for bankruptcy for the last 15 years.

[Mildmannered]

the various parties aren't going to compromise until bankruptcy is filed -- so the sooner, the better, I guess

[SimJack]

It's ok GM, unlike you, we will be gentle and use a nice 5W-20W lube to make this 'new' activity less painless. After all, the first cut is always the deepest. GB gave us all 'Shock and Awe', here's what it's like on the home front.

[jordan3189]

It's about time.