GM bankruptcy almost inevitable [UPDATE: Bankruptcy is filed]

In the aftermath of Chrysler's bankruptcy announcement, rumors swirl over what fate will befall the former auto industry giant.

Local news is saying that dealers will receive notices via mail shortly to tell them they will no longer get cars and are out of business.

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.

www.detnews.com...

To those who live in Michigan, it could spell even tougher economic times.

related info, regarding GM leaving it's current headquarters in Detropit
www.abovetopsecret.com...

[edit on 1-6-2009 by DontTreadOnMe]

By now, most have heard the news:

General Motors files for bankruptcy protection

The bankruptcy filing represents a dramatic downfall for GM, which was founded in 1908 by William C. Durant, who brought several car companies under one roof and developed a strategy of "a car for every purse and purpose." Longtime leader Alfred P. Sloan built the global automaker into a corporate icon.

Only time will tell whether this will be a legitimate restructuring or whether the government will use this bankruptcy to further its agenda of universal health care and green cars.
Having the federal government owning such a large percentage of a company just cannot be a good thing for our Republic.

CEO Henderson: Bankrupt General Motors hopes to cut 2,100 dealers under Ch. 11

Opinion:
GM bankruptcy is epic fall

Related ATS story:
US Government to own 60% of GM, Canada 12%. Details inside.



[edit on 1-6-2009 by DontTreadOnMe]

Originally posted by DontTreadOnMe
Local news is saying that dealers will receive notices via mail shortly to tell them they will no longer get cars and are out of business.

Just as dealers are receiving notices that they'll be out-of-business, retirees of GM are receiving notices telling them they're losing their 100% of their pensions and health insurance coverage.

My mom just received an email from our family friends who just received such a notice. Our family friend who retired from GM after working there 42 years, said he received notification that because of GM's bankruptcy, he is losing 100% of his pension and health benefits.

He and his wife are both chronically ill, and losing both health benefits and pension is going to drastically affect their lives. This bankruptcy is going to hurt a lot people, and my heart goes out to them.

Edit: I just wanted to add that our family friend who retired from GM worked at Delphi which apparently split off from GM at one time. I'm kind of confused if he receives his pension from Delphi or GM...not sure if he retired from GM before or after Delphi split off from General Motors.

[edit on 3-6-2009 by cornblossom]