GM to emerge from Chapter 11. Sale of assets approved.

[quagmire]

The judge just gave the ok for GM to sell its viable assets to the new government backed GM while the old GM consisting of the inviable assets will stay in bankruptcy. Obama hopes to issue the IPO next year to make GM a public company again and most likely will sell off their 60% share at around the same time( just guessing).

http://freep.com/article/20090705/BUSINESS01/90706001

[TwinCities Dan]

I still own some GM stock. Hope GM doesn't completely wither away, despite actions as of late, it's still a relic of what America once was... :o :(

[quagmire]

I still own some GM stock. Hope GM doesn't completely wither away, despite actions as of late, it's still a relic of what America once was... :o :(

Just curious, how come you didn't sell your stock( even though it was really low anyway) before GM filed for Chapter 11? As your stock is under the old GM and is pretty much worthless.......

[TwinCities Dan]

It's only a few shares, I thought I'd ride it out... (brilliant!) :o

Actually, I've never sold, when I invest I let it do it's thing and I try to forget about it... (I know that's naive, but I'm pretty new to investing...)

[Shivetya]

As my investment guy says, no one in their right mind will buy their bonds now. Those buying the stock are going to try and game it. As a long term investment the under the table recommendation is not to buy bonds in heavily unionized companies that show financial difficulty.

[opinioncircle]

As my investment guy says, no one in their right mind will buy their bonds now. Those buying the stock are going to try and game it. As a long term investment the under the table recommendation is not to buy bonds in heavily unionized companies that show financial difficulty.

Aren't they government guaranteed?

[Desertrat]

opinioncircle, the government just "unguaranteed" the whole concept of sanctity of contract with this deal. Nobody in his right mind would buy the corporate bonds of a company which could be in any sort of financial difficulty. The possibility of loss would be just like the losses now incurred by holders of GM corporate bonds as a result of this settlement.

This whole deal was set up as a payoff to the UAW for its support during the 2008 campaign. As is, their vote is now bought for the 2010 campaign, via, "We saved your jobs!" What's not understood by the union rank-and-file is that this is a short-term save...

[Counterfit]

So what's supposed to happen to the "old" GM? I know buyers have been found for Hummer (some Chinese company) and Saturn (Roger Penske :cool: ), but what about the other stuff?

[Zombie Acorn]

So what's supposed to happen to the "old" GM? I know buyers have been found for Hummer (some Chinese company) and Saturn (Roger Penske :cool: ), but what about the other stuff?

From the sound of it (and I could be wrong because the government has totally messed up the way corporate bankruptcy is supposed to work with their personal agenda in the past) the other assets will be liquidated and sold off to compensate parties of interest. There is usually a hierarchy on who gets compensated first.

[quagmire]

From the sound of it (and I could be wrong because the government has totally messed up the way corporate bankruptcy is supposed to work with their personal agenda in the past) the other assets will be liquidated and sold off to compensate parties of interest. There is usually a hierarchy on who gets compensated first.

Nope, that is exactly what will happen to old GM. It will be liquidated. Hence why it is called Motors Liquidation Co. now. ;)

[Counterfit]

Time to buy a 40 ton hydraulic press. :D

[Sun Baked]

Yay, the Steven LaTourette Amendment... :rolleyes:

House bill to save terminated dealerships passes committee (http://www.cleveland.com/open/index.ssf/2009/07/rep_steve_latourette_seeks_rep.html)

Someone was bound to do it, now we know who to blame if it doesn't get booted.

[quagmire]

I find it funny it was originally Congress that wanted GM and Chrysler to do these things, but now that they are actually doing it, Congress is now wanting to stop it. GM is simply letting the contracts expire in 2010. So at least they are not as harsh as Chrysler having the dealers close pretty quickly.

Also, there is nothing stopping these "closed" dealers to go to another automaker. I am sure the Indian and Chinese automakers looking to make an inroad in the US market would love to pick them up......