Wednesday, April 8, 2009

Report : General Motors entering "intense" bankruptcy preparations

Looking at the down-signing GM sales figures, the people at the General know that anything could happen now. In fact, according to some reports form Reuters and CCN, GM is now forfiling “intense and earnest” preparations for a possible Chapter 11 bankruptcy filing. Ofcourse, that's the last thing they want. Nevertheless, GM is still hoping to win concessions from creditors and unions to avoid a possible bankruptcy. Yet again, the 60-day deadline that Presidant Obama presented to GM, would led to intense bankruptcy preparations due to the short time frame.

GM is hoping that those creditors agree to take an equity stake in the company in return for reducing debt by at least two-thirds. GM owes about $28 billion to holders of unsecured debt. So even creditors could bail on GM.

So by June 1, we will know. Whether will GM keep rolling or will pop-out.

Source : [Reuters and CNNMoney]

No comments:

Advertise with us