Quote:
Originally Posted by FrankT
Well, when you take on the federal Govt. for a partner, it's easy to turn a profit. Because now that the Feds are your partners, standard business rules don't apply anymore. Like declare bankruptcy, stiff all the original shareholders, stiff all the bond holders (who SHOULD have had GM liquidate assets to satisfy the debt owed to the bond holders) and give the Union (UAW) a percentage ownership in the very company they helped to bankrupt. Federal bankruptcy law normally provides for the bond holders to liquidate assets to satisfy debt. But not this time, I guess.
Now don't get me wrong, I am very happy that GM is still in business. I just think some of the things they did to restore profitability to the company were a little underhanded.
|
True, but I do not beleive America will ever let the big three die. So whe Chrysler needed help back in the day, they got it and have prospered