GM: company faces a March 31 deadline

[Supermans]

http://finance.yahoo.com/news/GM-aud...-14550933.html

The company faces a March 31 deadline to have signed agreements of concessions from debtholders and the United Auto Workers union to show the government it can become viable again.

How much do you wanna bet ************* the House and Senate decide to pass a bill to take control over GM and the Union close to this deadline?? Since they are already heading to nationalize the private banking industry one by one, and later on the health care industry. It makes sense to take over every large "union controlled" business they can and make Government even more powerful..

Either way we'll get our Camaro's however I sure pray to God that Chapter 11 is filed at this point...

[Moose]

I wish they would give the financial institutions, who they continue to throw billions at, and who seem to keep losing it like a burst dam, half the "crap" they're giving the automakers.

[Andro]

Say it ain't so

[Angrybird 12]

Originally Posted by Supermans

http://finance.yahoo.com/news/GM-aud...-14550933.html

The company faces a March 31 deadline to have signed agreements of concessions from debtholders and the United Auto Workers union to show the government it can become viable again.

How much do you wanna bet *********team including the House and Senate decide to pass a bill to take control over GM and the Union close to this deadline?? Since they are already heading to nationalize the private banking industry one by one, and later on the health care industry. It makes sense to take over every large "union controlled" business they can and make Government even more powerful..

Either way we'll get our Camaro's however I sure pray to God that Chapter 11 is filed at this point...

I guess if that happens the initials will stay the same "GM" but then it will mean "Government Motors".

[trm0002]

Originally Posted by Andro

Say it ain't so

Oh, it is so. And they ALL should have been allowed to fail to the point of Chapter 11. GM will be in Chapter 11. How can they not? They lost 4x per share what the stock is worth last year. The news said it was equivalent to costing them over $3000 per car to make them. Concessions from the UAW (which will amount to nearly NOTHING IMO) isn't going to help that.

[diddiyo]

Originally Posted by Moose

I wish they would give the financial institutions, who they continue to throw billions at, and who seem to keep losing it like a burst dam, half the "crap" they're giving the automakers.

yeah, that's what's really pissing me off. The banks are getting a freeride while the not-so-big-three, who unlike the banks are actually providing a product, are being raped.

[Tango16]

The first good news about GM in a long time. I hope the Company can go int bankruptcy restructuring to level the playing field with non-union foreign car companies. Read the article before replying.


Auditors: 'Substantial Doubt' GM Can Survive
Thursday, March 05, 2009


Print ShareThisGeneral Motors Corp.'s auditors have raised "substantial doubt" about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan.

The automaker revealed the concerns Thursday in an annual report filed with the U.S. Securities and Exchange Commission.

"The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern," auditors for the accounting firm Deloitte & Touche LLP wrote in the report.

In pre-market trading, GM shares fell 14 percent from Wednesday's close, to $1.90.

GM has received $13.4 billion in federal loans as it tries to survive the worst auto sales climate in 27 years. It is seeking a total of $30 billion from the government. During the past three years it has piled up $82 billion in losses, including $30.9 billion in 2008.

The company faces a March 31 deadline to have signed agreements of concessions from debtholders and the United Auto Workers union to show the government it can become viable again. On Feb. 17 it submitted the restructuring plan to the Treasury Department that includes laying off 47,000 workers worldwide by the end of the year and closing five more U.S. factories.

GM said in its filing that its future depends on successfully executing the plan.

"If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code," the Detroit-based automaker said in the annual report.

GM, the report said, is highly dependent on auto sales volume, which dropped rapidly last year. "There is no assurance that the global automobile market will recover or that it will not suffer a significant further downturn," the company wrote.

GM has said it wants to avoid bankruptcy protection because it would scare off customers. Car buyers, the company has said, would be reluctant to buy from an automaker in bankruptcy protection due to fears that it wouldn't be around long enough to honor warranties or make replacement parts.

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GM, in its viability plan submitted to the Treasury last month, said it explored three bankruptcy scenarios, all of which would cost the government more than $40 billion.

Chief Operating Officer Fritz Henderson said at the time that the government would be the only place the company could get financing for bankruptcy reorganization, because the credit markets are frozen. The worst-case bankruptcy scenario would cost the government $100 billion, Henderson said, because revenue would severely drop due to a lack of sales.

He said there is not a lot of research about whether people would buy cars from an automaker in bankruptcy protection, but "that which is there suggests that sales fall off a cliff."

GM warned last month that its auditors may raise the "going concern" doubts, and industry analysts said auditors' statements may trigger clauses in some of GM's loans, placing them in default.

But the company said in its filing that it has received waivers of the clauses for its $4.5 billion secured revolving credit facility, a $1.5 billion term loan and a $125 million secured credit facility.

"Consequently, we are not in default of our covenants," the report said. "If we conclude that there is substantial doubt about our ability to continue as a going concern for the year ending Dec. 31, 2009, we will have to seek similar amendments or waivers at that time."

GM spokeswoman Julie Gibson said there is no clause in the terms of the government loans that places them in default if the auditors raise doubts about GM's ability to keep operating.

"That was not a condition of the loan. It's not in the agreement," she said.

[detroitboy]

AIG is getting the frree ride (and very quietly I might add) because they are the holder of the pension funds for our people in Congress and House of Representatives.

Nice setup huh?

[Mr Twisty]

Watch those bastards in congress vote themselves a payraise now...Those poor guys are really overworked. Call your congressmen and ask them..."What do you drive?"

[Missile Man]

Just read this on Fox News.

"General Motors Corp.'s auditors have raised "substantial doubt" about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan."

http://www.foxnews.com/story/0,2933,505130,00.html

Keeping the fingers crossed.

[Dakota Kid]

This is actually a good thing. Chap 11 will protect the company from the tenacles of Obama and his band of socialists.

It is the only way GM will remain independent.

[Scott@Bjorn3D]

But it will have to be the goverment that gives GM the money to survive. So Obama will have his hands in it either way. That is unless they go chapter 7 then it is game over.

Reason is no banks have money to loan GM to make it thru Chapter 11.

[Rodrunner]

I agree with you, Kid, time to stop the bailout, get some protection from creditors and the union, and reorganize.

[Miamimatt]

i dont understand you people. Obama doesnt want to touch GM. Theres is no money to be made there. second unions supported him big time so he doesnt want to touch this one. Remember Republican run states dont like unions bc unions make business difficult for the owner. Gm has been hurting since as early as 1999 and this is comming from a person who lived in MI up until a year ago and most of my friends and family work there. NEWS flash GM has got a big choice to make and the gov cant help them.