General Motors' lobbyists are trying to terrify the nation into keeping the company on life-support with another $25 billion bailout. Judging from the panicked noises emanating from Washington, they are succeeding. So it's time we started talking about the conditions that should be put on this latest handout to a chronically weak American company.
Thomas Friedman (NYT) and Paul Ingrassia (WSJ) have started the list. I've added to it:
* Stock goes to zero (shareholders lose everything)
* Existing debt-holders take a hit ($0.30-$0.40 on dollar?)
* Bailout money is dispensed in small amounts in return for senior convertible debt (converts into 100% ownership), pending the meeting of goals
* Management and board dumped without golden parachutes as soon as strong replacements can be found
* Union contracts torn up
* Company radically downsized
* Remaining employees offered new, fair employment terms (pay, benefits) which they can accept or decline at their choosing
* Company commits to designing and building cars people want.
Anything else we should add? Please add in the comments.
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