General Motors Bankruptcy All But Inevitable – Another $15.4 billion down the toilet

So what does $15.4 in already wasted tax payer money buy us? More than likely another bankrupt auto maker General Motors, which will probably end up something like Chrysler with 55% UAW ownership. For General 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.  More from Fox News:

“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 has received $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.

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May 10, 2009 · Filed Under General Motors


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