GM Bankruptcy Tomorrow? Don't Be Shocked
Registered User
Joined: Nov 2001
Posts: 251
From: Aurora/Valparaiso
Sounds like tomorrow is D-day for GM.
General Motors Corp. plans to name Al Koch as the automaker’s chief restructuring officer tomorrow when GM is expected to file for bankruptcy protection at 8 a.m. New York time, the Wall Street Journal reported, citing unidentified people familiar with the matter.
Koch, a turnaround specialist and managing director at the advisory company AlixPartners LLP, will be the highest-ranking executive at GM from outside the company, the newspaper said. He will oversee approximately 60 Alix workers employed by GM and will report to GM Chief Executive Officer Frederick Henderson and the automaker’s board.
The 67-year-old Koch was interim chief financial officer of Kmart Corp. when it filed for Chapter 11 bankruptcy in 2002, the Journal said. Koch also spearheaded a turnaround of Champion Enterprises Inc. that allowed the manufactured-home builder to avoid bankruptcy, the Journal reported.
If GM emerges from bankruptcy, Koch is expected to lead a new management team to wind down the “Old GM” which would include efforts to sell or spin off the automaker’s assets including the Saturn, Pontiac and Saab brands and as many as 20 factories, the newspaper said
Koch, a turnaround specialist and managing director at the advisory company AlixPartners LLP, will be the highest-ranking executive at GM from outside the company, the newspaper said. He will oversee approximately 60 Alix workers employed by GM and will report to GM Chief Executive Officer Frederick Henderson and the automaker’s board.
The 67-year-old Koch was interim chief financial officer of Kmart Corp. when it filed for Chapter 11 bankruptcy in 2002, the Journal said. Koch also spearheaded a turnaround of Champion Enterprises Inc. that allowed the manufactured-home builder to avoid bankruptcy, the Journal reported.
If GM emerges from bankruptcy, Koch is expected to lead a new management team to wind down the “Old GM” which would include efforts to sell or spin off the automaker’s assets including the Saturn, Pontiac and Saab brands and as many as 20 factories, the newspaper said
Registered User
Joined: Mar 2008
Posts: 29
From: Ocala, FL
This is in no way a bankruptcy, despite what the news has been spinning for Obama.
"The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out."
This is a gov. takeover plain and simple. All of the spinning by the media that GM will be leaner and stronger is bull. GM will become an arm of the gov. to do its biding regardless of whats in the best interest of the co. This is Fannie and Fredie all over. In case you've forgoten or didn't know, F&F were both semi gov. co. that were operated based more on politics rather good business practices. They gave out and bought up as much bad home loans as they could because one, its what the democrats in office wanted(F&F were huge contributors to and benefactors of the democratic party) and two they knew the gov. would bail them out since it was obligated to. This as a result started the dominos falling in the curent recession(if not depression) that not only the US but the entire world is in. You can expect the same from GM, although the national and global economic ramificaitons will be much less. I was willing to give Obama a chance but now he has crossed the line.
"The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out."
This is a gov. takeover plain and simple. All of the spinning by the media that GM will be leaner and stronger is bull. GM will become an arm of the gov. to do its biding regardless of whats in the best interest of the co. This is Fannie and Fredie all over. In case you've forgoten or didn't know, F&F were both semi gov. co. that were operated based more on politics rather good business practices. They gave out and bought up as much bad home loans as they could because one, its what the democrats in office wanted(F&F were huge contributors to and benefactors of the democratic party) and two they knew the gov. would bail them out since it was obligated to. This as a result started the dominos falling in the curent recession(if not depression) that not only the US but the entire world is in. You can expect the same from GM, although the national and global economic ramificaitons will be much less. I was willing to give Obama a chance but now he has crossed the line.
Registered User
Joined: Jan 2000
Posts: 10,285
From: Albany, NY
This is in no way a bankruptcy, despite what the news has been spinning for Obama.
"The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out."
This is a gov. takeover plain and simple. All of the spinning by the media that GM will be leaner and stronger is bull. GM will become an arm of the gov. to do its biding regardless of whats in the best interest of the co. This is Fannie and Fredie all over. In case you've forgoten or didn't know, F&F were both semi gov. co. that were operated based more on politics rather good business practices. They gave out and bought up as much bad home loans as they could because one, its what the democrats in office wanted(F&F were huge contributors to and benefactors of the democratic party) and two they knew the gov. would bail them out since it was obligated to. This as a result started the dominos falling in the curent recession(if not depression) that not only the US but the entire world is in. You can expect the same from GM, although the national and global economic ramificaitons will be much less. I was willing to give Obama a chance but now he has crossed the line.
"The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out."
This is a gov. takeover plain and simple. All of the spinning by the media that GM will be leaner and stronger is bull. GM will become an arm of the gov. to do its biding regardless of whats in the best interest of the co. This is Fannie and Fredie all over. In case you've forgoten or didn't know, F&F were both semi gov. co. that were operated based more on politics rather good business practices. They gave out and bought up as much bad home loans as they could because one, its what the democrats in office wanted(F&F were huge contributors to and benefactors of the democratic party) and two they knew the gov. would bail them out since it was obligated to. This as a result started the dominos falling in the curent recession(if not depression) that not only the US but the entire world is in. You can expect the same from GM, although the national and global economic ramificaitons will be much less. I was willing to give Obama a chance but now he has crossed the line.
For what it is worth, Republicans were in charge of everything when the Federal Reserve along with F&F created this credit and housing bubble in 2002-2005.
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