For Motors Corp., the task at hand is so difficult that experts say a Chapter 11 bankruptcy filing is all but inevitable.
To remake itself outside of court, GM must persuade bondholders to swap $27 billion in debt for 10 percent of its risky stock. On top of that, the automaker must work out deals with its union, announce factory closures, cut or sell brands and force hundreds of dealers out of business — all in three weeks.
“I just don’t see how it’s possible, given all of the pieces,” said Stephen J. Lubben, a professor at Seton Hall University School of Law who specializes in bankruptcy.
GM, which is living on $15.4 billion in federal aid, faces a June 1 government deadline to complete its restructuring plan. If it can’t finish in time, the company will follow Detroit competitor Chrysler LLC into bankruptcy protection.
Although company executives said last week they would still prefer to restructure out of court, experts say all GM is doing now is lining up majorities of stakeholders to make its court-supervised reorganization move more quickly.
“If we need to pursue bankruptcy, we will make sure that we do it in an expeditious fashion. The exact strategies I’m not getting into today, but we’ll be ready to go if that’s required,” CEO Fritz Henderson said last week.
These liars and thieves we now call politicians told us that bankruptcy was not a viable option, gave GM 15.4 billion dollars of our money ($15,400,000,000) and now they say bankruptcy might be best. UNBELIEVABLE!
Save the Billionaires you traitors, money is getting tight and we wouldn’t want them to have to go without their 3 vacation homes, their servants, yahts or the millions they donate to get you thieves back in office.
Laid-off, evicted former tax-paying citizens are living in tents in Sacramento right now.
