Quote:
Originally Posted by swifttal
Worst case is chapter 7 as in liquidation and perhaps China making camaros in the future (Nooooooooo! shudder). Best case is chapter 11 if bankruptcy happens - but where will the money to reorganize come from  ? Also I doubt operations would be ongoing during bankruptcy as they've already said they can't sustain ops past this month on the money they currently have - Not to mention the time it takes to do this. I admire GMs stance on this isn't an option, I tend to agree, but what do I know |
I'm not quite clear on the regulations on Chapter 7 but Congress has been talking about an agreement that if in Chapter 11 the loan that GM recieves will help the reorganize.
I think most importantly the out dated contracts can be updated to save the comany billions.
the reason they cant last past this month is because of the legal requirements to pay union contracts and pensions I believe + of course opertion cost.
Everything seems to be on the way to working out but the cost will be most to the invester, especially if the government owns a piece of GM. The cost will be that anyone who owns GM stock will be diluted to... lets say for example 1/10 the value (maybe not as bad or maybe worse).
... but GM will stay above water so to speak.
I'd like to help out GM by purchasing a Camaro right now but I must graduate first, until then I hope GM can hold on.
