Report: General Motors to declare Chapter 11 bankruptcy

[Chris]

DETROIT — General Motors Corp. said Thursday a committee of bondholders has agreed to a sweetened deal proposed by the U.S. government to erase the automaker’s unsecured debt in exchange for company stock.

The news came in a regulatory filing that spells out the Obama administration’s game plan for what it hopes will be a speedy Chapter 11 bankruptcy reorganization that will leave the U.S. government as the dominant GM shareholder with a much smaller debt load.

A person familiar with GM’s plans said it was “probable” that the company would file for bankruptcy protection on Monday. The person didn’t want to be identified because the plans were still under discussion with the U.S. and Canadian governments.

The government proposal is similar to the approach taken in the bankruptcy reorganization approach used by Chrysler Corp. Its plan to shed assets and sell control of a downsized carmaker to Fiat, aided by government financial assistance, could receive final approval from a bankruptcy court judge in New York before the end of the week.

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[5412]

Hi,

This should have happened months ago before Bush foolishly started bailing out US companies.  Make no mistake Government Motors will be owned by us taxpayers, it will drain the economy just like Amtrak and the post office, and BO is totally lying when he says he wants out of the car business.  BS, he wants us all driving green Volkswagons just like Hitler.

I will predict that Ford, who has not accepted government money, been much more prudent in their expansion, will eventually be targeted and punished by the government as we will see huge incentives to by GM cars which will hurt the one company who has played by the rules.

regards,
5412

[Hawkgirl]

So after billions in aid by the Obama Car task force...GM goes bankrupt...Obama's intervention probably killed GM.  He will then kill our healthcare and our economy to follow.

This guy is the biggest nightmare this country has ever faced.

[NHSparky]

Hate to say it, but he's just doing what Bush started, even though on a much larger scale. 

Neither party has a whole lot of my respect right now.

[Hawkgirl]

Hate to say it, but he's just doing what Bush started, even though on a much larger scale. 

Neither party has a whole lot of my respect right now.

Oh, I'm not dismissing Bush's part in this at all..he started it...as a way to gain popularity in his last months.  He should know no matter what he did to appease the left, they would continue to hate him.
I hope the next Republican candidate learns that any appeasement to the left is not only wrong..but it will not get them anywhere..Newt understands this.

[Carl]

One rolls the dice and takes chances but it also is true that folks bought GM stock (I did) last fall as they and Uncle Sam were having their tango.
The betting was that they would be rescued so might as well take the chance to make back some of the money that was eventually going to be taxed out of me.

So I took a loss,life goes on and will make it back some where else but this whole affair has bilked people out of money now that what was being promised wouldn`t happen has after all.
If the gov wasn`t a co-partner in the thing the SEC would be down a companies throat for misleading the shareholders.

[Carl]

I should have added that I knew from the start it could all be lost in a day and if one wants to gamble like that never bet more then they are willing and can afford to lose so not griping on that part.

I do suspect that many others don`t have that understanding of things (they should but not a perfect world) and were enticed into what seems to have just been a prolonged cat and mouse game.