Any chance they will not file Chapter 11 ?

[DGthe3]

Originally Posted by Mrbowtie26

Any chance this will not happen and they will try to make it without filing chapter 11 ? I'm thinking of buying up some stocks depending how low they go encase there is a chance.
Thanks

Is there a chance they won't file? Yes.

Would I be willing to risk money on them not filing? Not anymore. If you had asked 3 months ago I would have given a different answer, but not today. But either way, GM shares won't suddenly be worth $20 each in a month so waiting would be your best bet.

[MrIcky]

Originally Posted by DkknightX

Actually, it won't create any wait time whatsoever. My wife and I visited my dealer lastnight and he confirmed this. Before June 1st, GM will assess inventory at all of the dealerships that are left and then shut down factories indefinitely. This does not apply for Year Model 2010 vehicles including the Camaro where there are fewer cars and alot more demand. The bankruptcy theory slowing down the Camaro will not have any affect on the Oshawa plant. This information is accurate and logical. GM will still be on the hook for some debt that bankruptcy will not protect them from, so if a car is in demand, that assembly line keeps moving.

This isn't how it works.

Now the multi-national angle (Canadian Factory) is still a wild-card, but-

At the moment you have officially filed Bankruptcy- ALL money/accounts/assets get frozen, everything. Then a Judge unfreezes things on an item by item basis. If the Camaro plant was on American soil, I can guarantee that all funds used to run the plant would be frozen. Now they may have this planned out and that may only be for 10 minutes while the Judge authorizes the checks, however I'd be surprised if there isn't at least a few days of closure. Typically the first thing that gets unfrozen is the wage account but only for the amount already owed prior to freezing, and for GM this is likely several accounts with all sorts of documentation and accounting/authentication.

I would bet the accounting attachments for the initial bankruptcy filing are several thousand pages, and even a judge with a Federal Accounting team is going to take some time to get through it, prepackaged or not.

[Design1stCode2nd]

If I was betting I'd say you'll see a press release or Obama press conference on May 29th.

[manimsoblack]

Originally Posted by Mrbowtie26

Any chance this will not happen and they will try to make it without filing chapter 11 ? I'm thinking of buying up some stocks depending how low they go encase there is a chance.
Thanks

Chances are that'll they'll file and issue new stock as the come out. They may offer a trade up to rid the market of the old stock 3:1, 10:1, 100:1 . At least that's what me and some buddies came up with after taken a crash course on corporate bankruptcy laws.

[Vash]

It's not Chapter 11 if the government buys shares. It's Federalization of the company. Like how they do it in Venezuela.

Remember we are in uncharted waters. Normally the Constitution also keeps the executive branch out of the bankruptcy court. As a seperation of powers. But this executive branch has complete CEO / Board level control of GM.

So this has never happened in America before. It's not an A typical corporate bankruptcy at all.