Revenue losses push GM to brink of bankruptcy

[dodson914]

Originally Posted by fdjizm

sounds like bankruptcy is not even a bad thing maybe i dont understand fully, sounds messed up to me that it works that way a company can just build up debt and then one day say "umm yea lets erase all thise and start over" lol

Chapter 11 bankruptcy is not the same as a chapter 7 for an individual. It's not a liquidation of debt. They work with creditors and restructure everything. So what they owe to some will definitely come down but it doesn't just disappear. They pay to a trustee and he then pays out the money to their creditors.

It's quite similar to a chapter 13 if I remember correctly.

[Mr. Wyndham]

Originally Posted by fdjizm

sounds like bankruptcy is not even a bad thing maybe i dont understand fully, sounds messed up to me that it works that way a company can just build up debt and then one day say "umm yea lets erase all thise and start over" lol

The problem with that is, if the courts view the above company as irresponsible and/or incapable of manging itself, they liquidate it. Sell it off in bits and pieces. This won't happen with GM...but that's why companies don't look kindly on bankruptcy.

[2SSRS@Gen5diy]

I cant Evan say what i want or i will get A warning from the mods.
But as for gm its time to go bankruptcy, all that the company dos is try to control the costs not to innovate and grow and improve the company all that is done is to keep the stat as coo.
If it gos bankrupt new people like Roger pesky can buy the company, You say i am crazy, You are right but this week he and a group are trying to buy saturn from Gm, I don't know about you But i think Mr pesky knows more about how to run a company and win than all of GM together.
If it was up to me i wood fire all the Bord of GM and any one that has 20 years or more of destroying this car Company.
So you see a this is the best medicine for this.

[2SSRS@Gen5diy]

Originally Posted by Dragoneye

The problem with that is, if the courts view the above company as irresponsible and/or incapable of manging itself, they liquidate it. Sell it off in bits and pieces. This won't happen with GM...but that's why companies don't look kindly on bankruptcy.

But Is that not what GM has done for the last 30+ years to them selves and are still doing, ie taking to mach $ that no way in hell can be re payed back.
I run a small company and if times are bad we let go of employees as fast as need be we look 1 a month to see if we are over staffed.

[Mr. Wyndham]

Originally Posted by 2SSRS

I cant Evan say what i want or i will get A warning from the mods.

I appreciate your reservation.

Originally Posted by 2SSRS

But as for gm its time to go bankruptcy, all that the company dos is try to control the costs not to innovate and grow and improve the company all that is done is to keep the stat as coo.

I disagree. At least within the past 5-10 years, I'll disagree. GM was one of the first global car companies to invest in China...that's paying off big-time. They're one of the premiere manufacturers in that country with a respect for the Buick brand that shames us North Americans. I would call that seeking to grow.

Then there's the constant innovation. Did you know that Mercedes buys the Magnetic Suspension system from GM and installs it on their high-end cars? Or that the recent startup Electric car company making the "Karma" came to GM for help on it? Did you read yesterday that the 2010 Equinox will get 32 miles to the gallon without any funky hybrid tech? What about the Cruze, getting Prius-league fuel economy without the fugly looks and hybrid complexity? Or the Volt, completely surpassing the Prius in nearly every way imaginable. Don't forget that in the past 5(?) years, GM's nearly halved its warranty claims, and skyrocketed their brands quality ratings to the point where Buick dethroned Lexus as the highest-quality brand on the market. And finally, in the last 5 years or so, Chevrolet has become one of the most fuel efficient brands on the market, second only to Honda...losing by a meager .3 mpg. There's much...much more. If you don't consider any of that innovation, I don't know what is...

Originally Posted by 2SSRS

If it gos bankrupt new people like Roger pesky can buy the company, You say i am crazy, You are right but this week he and a group are trying to buy saturn from Gm, I don't know about you But i think Mr pesky knows more about how to run a company and win than all of GM together.

What makes you say that?

Originally Posted by 2SSRS

If it was up to me i wood fire all the Bord of GM and any one that has 20 years or more of destroying this car Company.
So you see a this is the best medicine for this.

Already been done by our beloved government...

Originally Posted by 2SSRS

But Is that not what GM has done for the last 30+ years to them selves and are still doing, ie taking to mach $ that no way in hell can be re payed back.

...no? What money have they taken that they can't pay back? They've lost money...but I'm not aware of any oustanding loans that were unpayable before the economy collapsed, and their income with it...

Originally Posted by 2SSRS

I run a small company and if times are bad we let go of employees as fast as need be we look 1 a month to see if we are over staffed.

So did they! Have you not been reading the paper every other week? "GM slashes x-thousand jobs."..."GM to cut salaried workforce"...."GM to idle plants and layoff more labor"....

[fdjizm]

i think i am starting to understand this bankruptcy thing thanx for the clarification guys!

[Hylton]

Originally Posted by Dragoneye

...no? What money have they taken that they can't pay back? They've lost money...but I'm not aware of any oustanding loans that were unpayable before the economy collapsed, and their income with it...

Get ready to update your post in 3 weeks my friend....

http://www.cnbc.com/id/30349648/site/14081545

[Mr. Wyndham]

Originally Posted by Hylton

Get ready to update your post in 3 weeks my friend....

http://www.cnbc.com/id/30349648/site/14081545

But if I read that correctly, that's due to the debt-for-stock exhange processes they'll be in the middle of, right?

[Bell040]

There is ~ $63 million tied up in the Area 51 cars (30,000 X 2100 cars).

that may only be a small dent in what they owe... but gees... send us our cars and its yours GM....

[Hylton]

Originally Posted by Dragoneye

But if I read that correctly, that's due to the debt-for-stock exhange processes they'll be in the middle of, right?

No, they owe it now. If they do the swap, they will rid themselves of the payment.

[Mr. Wyndham]

Originally Posted by Hylton

No, they owe it now. If they do the swap, they will rid themselves of the payment.

Right, and didn't that article say that that's what they're hoping to do before or during the June 1 deadline -- which is why they can't (or won't) pay it outright?

[trudawg660]

Originally Posted by Bell040

There is ~ $63 million tied up in the Area 51 cars (30,000 X 2100 cars).

that may only be a small dent in what they owe... but gees... send us our cars and its yours GM....

GM cant and wont be saved by the camaro, the whole company needs to be Restructured. Ford isnt staying alive just because of the mustang. But with saying that this is the first time GM has had a car this anticipated in numerious years, so it will help with a lot of their debt but they need more.

[Hylton]

Originally Posted by Dragoneye

Right, and didn't that article say that that's what they're hoping to do before or during the June 1 deadline -- which is why they can't (or won't) pay it outright?

If the current negotiations with bondholders are unsuccessful, they will still be on the hook for this payment. The reason they can't or won't pay it outright on June 1st, is that they have no money to do it.

GM burned through 113 million dollars a day MORE than they took in during Q1. That is staggering when you consider how much money they have been given over the same time period. We are not talking about losing money here, we are talking about cashflow. Time to drop the gavel.

[Mr. Wyndham]

Originally Posted by Hylton

Time to drop the gavel.

So long as you don't thwack them to hell...