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post #1 of 22 (permalink) Old 05-27-2009, 08:40 AM Thread Starter
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You too can drive a new OMW!

From the Obama Motor Works.




http://www.detnews.com/article/20090...391/1148/rss25
Quote:
GM: Bondholder offer fails; bankruptcy closer
Robert Snell / The Detroit News

Detroit -- General Motors Corp. has failed to lure enough bondolders to swap debt for a 10 percent stake in the company, which pushes the automaker closer to a Chapter 11 bankruptcy filing.

The number of bondholders who agreed to the swap was "substantially less" than the 90 percent mandated by the U.S. Treasury Department, which has loaned GM $19.4 billion.

The offer, which expired at 11:59 p.m. Tuesday, was widely viewed as unlikely to tempt GM's unsecured bondholders to exchange about $24 billion in debt for a 10 percent piece of the restructured automaker.

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The failed exchange could force GM to file Chapter 11 bankruptcy by Monday, the deadline by which the automaker was required to restructure and reach money-saving concessions with the United Auto Workers and bondholders.

"The GM Board of Directors will be meeting to discuss GM's next steps in light of the expiration of the exchange offers," the automaker said in a statement today.

President Barack Obama's auto task force, which is overseeing GM's restructuring and was in talks with bondholders Tuesday, expected the bond exchange offer to fail, two people familiar with the matter said. GM could file bankruptcy as early as Monday in New York.

A person familiar with the matter said the Obama auto task force believes the current offer to bondholders was "full and fair" but declined to say if the task force would increase its offer.

The offer was expected to fail considering a committee representing some of GM's largest bondholders have called the offer unfair and countered with a proposal that would give them a 58 percent stake in the company.

Shareholders would get just 1 percent of the equity in GM.

Regardless of the results, GM needs to file Chapter 11 bankruptcy to become profitable company, said Jim McTevia, managing partner of Bingham Farms-based turnaround firm McTevia & Associates.

A bankruptcy filing would help GM restructure debt, shrink its dealer network, shed unprofitable assets and dispose of machinery and equipment, he said.

"I don't think that a bondholder's agreement is the difference between GM filing under Chapter 11 or not," McTevia said. "Being able to get creditors under control and operating a company properly and profitably is apples and oranges."

Bondholders large and small called the offer unfair considering the United Auto Workers and U.S. Treasury Department could be awarded 89 percent of the equity in a restructured GM, which is surviving thanks to $19.4 billion in federal aid
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post #2 of 22 (permalink) Old 05-27-2009, 11:26 AM
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Why anybody would want to buy into GM now is beyond me.

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post #3 of 22 (permalink) Old 05-27-2009, 01:32 PM
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Yes, let's give all the power to the UAW (facepalm)
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post #4 of 22 (permalink) Old 05-27-2009, 01:36 PM
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Yes, let's give all the power to the UAW (facepalm)
I will buy FORD, and ONLY FORD from here on.

Fuck all this bullshit.
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post #5 of 22 (permalink) Old 05-27-2009, 01:44 PM
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I will buy FORD, and ONLY FORD from here on.

Fuck all this bullshit.
They will be next. Remember this is about control, obama will find away to sink his teeth into ford as well.

You can't fix stupid, but you can vote it out.

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Bullet sort of looses his grip when he factually gets his ass tore off.
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post #6 of 22 (permalink) Old 05-27-2009, 01:46 PM
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They will be next. Remember this is about control, obama will find away to sink his teeth into ford as well.
I certainly hope not. Ford has done everything right over the past few years.
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post #7 of 22 (permalink) Old 05-27-2009, 03:03 PM Thread Starter
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Yes, let's give all the power to the UAW (facepalm)
The UAW probably stands the most to lose AFTER the bankruptcy. For one, everyone says they are getting a share of GM. That is incorrect. The health care fund is getting that share and they are expected to sell it fairly quickly because they actually need the money. The UAW is also going to lose a TON of jobs out of this deal. Many jobs are going overseas and not coming back (same goes with Chrysler). In fact, after the bankruptcy, GM will very likely no longer be the largest car manufacturer in North America. That will be Ford.

There has been a lot of hubbub made about the union. Yes they've gotten a shit load of benefits over the year but that stopped all the way back in 2005 with the last contract. Since then they have bent over backwards to try and help save GM, Chrysler, and Ford. GM is going into bankruptcy after another huge give back from UAW because the bond holders don't want to take pennies on the dollar for their loans and would rather roll the dice in court.

Frankly, I think this is going to bite Obama in the ass. Union members are not going to look kindly on his administration after their lives are ruined.
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post #8 of 22 (permalink) Old 05-27-2009, 03:47 PM
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I am unfazed at the fact that the US government will have an ownership interest in a business that it has invested BILLIONS of dollars in. That's not Communism kids, that is Capitalism 101.

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post #9 of 22 (permalink) Old 05-27-2009, 04:14 PM
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Frankly, I think this is going to bite Obama in the ass. Union members are not going to look kindly on his administration after their lives are ruined.
The collapse of the American auto industry almost guarantees that Obama will be a one-term president. At least I hope.
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post #10 of 22 (permalink) Old 05-27-2009, 04:38 PM
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The collapse of the American auto industry almost guarantees that Obama will be a one-term president. At least I hope.
10 to 1 he does not make 12 months
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post #11 of 22 (permalink) Old 05-27-2009, 04:46 PM
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10 to 1 he does not make 12 months
I wish.
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post #12 of 22 (permalink) Old 05-27-2009, 04:57 PM
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Gm has built some junky ass cars the last few years anyways.
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post #13 of 22 (permalink) Old 05-27-2009, 06:18 PM
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Originally Posted by aceman85turbo View Post
10 to 1 he does not make 12 months
It took Franklin D Roosevelt 4 terms and 2 failed New Deals as President before our country began to turn itself around. The masses still continued to elect him based on popularity VS an actual ability to fix the economy. With the unprecedented control this current faction is gaining, I wouldn't be surprised if we have Bama as president for 16+ years.
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post #14 of 22 (permalink) Old 05-27-2009, 06:19 PM Thread Starter
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It took Franklin D Roosevelt 4 terms and 2 failed New Deals as President before our country began to turn itself around. The masses still continued to elect him based on popularity VS an actual ability to fix the economy. With the unprecedented control this current faction is gaining, I wouldn't be surprised if we have Bama as president for 16+ years.
He's not talking about an election..
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post #15 of 22 (permalink) Old 05-27-2009, 07:20 PM
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He's not talking about an election..
The fact is that all anyone is going to do is bitch on the internet or on the radio etc. It will go no further than that.

This is no different than any other country throughout history whose people have bowed their heads in shame as their freedoms and hard work are squandered away.
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post #16 of 22 (permalink) Old 05-27-2009, 09:45 PM
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I've been seeing the new Camaros running around lately.

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post #17 of 22 (permalink) Old 05-28-2009, 07:51 AM
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Originally Posted by TheAsp! View Post
I am unfazed at the fact that the US government will have an ownership interest in a business that it has invested BILLIONS of dollars in. That's not Communism kids, that is Capitalism 101.
Your right its not communism, When you invest Billions of dollars that is not yours its called socialism. Remember the FED has no money of its own the money belongs to the people.

You can't fix stupid, but you can vote it out.

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Bullet sort of looses his grip when he factually gets his ass tore off.
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post #18 of 22 (permalink) Old 05-28-2009, 02:19 PM
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i'm curious...if the same uaw that has workers at ford has a large stake in gm; what's to keep them from causing ford problems or try to increase their cost of production and keep gm's cost lower to help them gain market share? i'm sure that there are plenty of things that they could do to hurt ford and help gm...it's not like ford has a choice as far as who they can use for labor...
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post #19 of 22 (permalink) Old 05-28-2009, 04:05 PM
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Is the original article related to this one???

http://www.msnbc.msn.com/id/30981121

Bondholders agreed to the deal, but it may be too late.

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post #20 of 22 (permalink) Old 05-28-2009, 05:08 PM
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The whole deal is bullshit, (chrysler, gm)... They go to bankruptcy, and the government basically throws the rules out the window. There are a lot of people (secured debt holders) getting screwed.

"Apres moi le deluge"


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post #21 of 22 (permalink) Old 05-28-2009, 08:42 PM
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Originally Posted by aceman85turbo View Post
10 to 1 he does not make 12 months

I'll take that. How much?


<----Relatively certain a fly wouldn't have a shot (pun intended) at nailing the sorry sack of shit...
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post #22 of 22 (permalink) Old 05-28-2009, 09:18 PM
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awesome, i heard that GM doesnt have to pay back the money it borrowed until it gets back on its feet....ummm am i the only one that thinks american car companies are fucked? I mean the reason they got in this situation is because people stopped buying their cars and lost the market to the japanese. Do you really think people are feel confident buying a car from a company that could be gone at any minute? Especially once they start selling piece of shit chinese cars? GM is doomed, circling the toilet im afraid and the people get to pay for it....

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