Saturday, July 4, 2009

BREAKING : If GM can’t sell its ‘good assets’ by July 10, it will be forced to liquidate !

On July 10th, 'New GM' need to report to the U.S. bankruptcy court their latest sales report. However, General Motors CEO Fritz Henderson told U.S. bankruptcy court earlier that if GM can’t sell its ‘good assets’ to a government supported ‘New GM’ by July 10, it will lose access to government funding and would be forced to liquidate. Henderson said that “business is doing better” as customers, suppliers and workers anticipate the completion of a successful deal for the company to become the ‘New GM.’

If a deal is approved, GM will sell its best assets, including its four-core brands (Buick, Chevrolet, Cadillac and GMC) under Section 363 of the bankruptcy code while the U.S. Treasury would provide 30 billion dollars in financing. Sources say that the GM sale hearing could continue for at least two days as the company faces numerous objections from the creditors committee and a group of bondholders.

So by July 10, there could be no GM! So, if you're really fond of GM, support them by actually buying a GM product, to keep them alive.

Source : [Reuters]

Refresher: GM filed for Chapter 11 bankruptcy protection last June. The CH11 bankruptcy forced GM to cut costs, and close plants. Under the bankruptcy plan, the new company is called 'New GM'. Also, the U.S. Government will be financing New GM with $30 billion, taking the majority of New GM at 60%. The Canadian Government will be paying $10 billion, taking over 12%, while the UAW will own 17.5%. GM bondholders will take a 10% stake only in New GM.

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