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No buyer is required in Chapter 11, a bankruptcy jugde could have put them under creditor protection.
Not all parties, share holders and bond holders most certainly were against it. The UAW was favored over other creditors, clearly political. The US government was the only organization that could have circumvented the court process.
The government didn't circumvent the court process at all - the case was heard before the Bankruptcy Court in New York City.
Quote:
While because of the size of this case and the interests at stake, GM's chapter 11 case can hardly be regarded as routine, GM's proposed section 363 sale breaks no new ground. This is exactly the type of situation where under the Second Circuit's many holdings, there is good business reason for an immediate sale. GM does not have the luxury to wait for the ultimate confirmation of a plan, and the only alternative to an immediate sale is liquidation.
In re Gen. Motors Corp., 407 B.R. 463, 493 (Bankr. S.D.N.Y. 2009) aff'd sub nom.In re Motors Liquidation Co., 428 B.R. 43 (S.D.N.Y. 2010) and aff'd sub nom.In re Motors Liquidation Co., 430 B.R. 65 (S.D.N.Y. 2010)
And in case you were wondering whether there were any other alternative immediate buyers, the court also adopted this statement in the Creditor Committee's brief:
Quote:
The simple fact is that there are no other viable bids-indeed no serious expressions of interest-to purchase GM's assets and no other feasible way for GM to restructure its business to remain viable. The current transaction is the only option on the table. The Court is thus faced with a clear choice: to approve the proposed sale transaction, preserve the going-concern value of the Debtors' businesses, and maximize substantial value for stakeholders (despite the pain that this course will inflict on numerous innocent parties), or reject the transaction and precipitate the dismantling and liquidation of GM to the detriment of all involved.
In re Gen. Motors Corp., 407 B.R. 463, 493 (Bankr. S.D.N.Y. 2009) aff'd sub nom.In re Motors Liquidation Co., 428 B.R. 43 (S.D.N.Y. 2010) and aff'd sub nom.In re Motors Liquidation Co., 430 B.R. 65 (S.D.N.Y. 2010)
Many corporations will file in Chapter 11, only to have the bankruptcy judge convert the case to Chapter 7 because there is no viable plan of reorganization. But for the government's 363 sale, GM would have had their case converted to Chapter 7, and they would have liquidated.
The government didn't circumvent the court process at all - the case was heard before the Bankruptcy Court in New York City.
And in case you were wondering whether there were any other alternative immediate buyers, the court also adopted this statement in the Creditor Committee's brief:
Many corporations will file in Chapter 11, only to have the bankruptcy judge convert the case to Chapter 7 because there is no viable plan of reorganization. But for the government's 363 sale, GM would have had their case converted to Chapter 7, and they would have liquidated.
Lol, why do you think there were no interested buyers? That is my concern. We have plugged the immediate hole but is this thing may really have any long term value?
Lol, why do you think there were no interested buyers? That is my concern.
There were no interested buyers because GM had been run terribly for years, had way too generous pension commitments, had lost market share gradually but consistently for over a decade, and the Hummer had completely blown up.
Beyond that, in early 2009, banks were being propped up themselves by bailouts. They simply did not have the capital to fund any buying of GM themselves, or to provide the cash and other capital for another potential buyer to make any realistic bid.
Quote:
We have plugged the immediate hole but is this thing may really have any long term value?
GM may crash in the long or medium run. If it happened tomorrow, it would be damaging to our economy, but it would do significantly less damage than it would have had GM failed and liquidated in early 2009.
I am old fashioned also. I just think it should be deserved before you get rewarded. On that note...it makes no sense whatsoever when a company pays out bonuses during a bad year when they had no profit.
Yes people should have jobs but only if they appreciate it and work hard for those jobs.
Apparently they had a good year.
Might want to take a gander at the Reuters link I posted.
People should only have jobs if they appreciate them?
What is this supposed to be, logic?
It's a job. Appreciation has nothing to do with it.
You work, you get paid for that work. You may get a bonus when the company does well and can afford it.
Do you turn down bonuses where you work, if you even do work?
Quote:
Originally Posted by kevinm
Bush signed the legislation to help the BANKS stay liquid and keep credit flowing. He did not spend one dime on buying up private companies. Bush was AGAINST signing the original TARP bill, but Obama insisted he do it before leaving office so that he could hit the ground running.
Ummmm, NO.
Bush signed TARP on 3 October.
The elections in the Us don't occur until November.
How does your scenario work again? I try to use a few facts here and there; not talking points. http://money.cnn.com/2008/10/03/news...lout/index.htm http://www.historycommons.org/contex...cial_crisis_21 This is a scalable context timeline. It contains events related to the event October 3, 2008: Troubled Asset Relief Program (TARP) Bill Passes, President Bush Signs into Law. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.
Last edited by chielgirl; 02-14-2011 at 10:57 PM..
Help is voluntary action.
Confiscation of property by force and redistributing to a favored comrade would only be deemed "help" in N Korea, China, etc.
Totally incorrect. Does the name "Northern Rock" mean anything to you. It was a bank the English government took into receivership during the height of the financial crises. The Irish goverment also took at least one bank into receivership last year during its fiscal crises. In fact its rather standard practice for goverments to take banks and other businesses into receivership IF IT'S DETERMINE TO BE IN THE NATIONAL INTEREST TO DO SO.
But don't let the facts stand in the way of your ideology.
There were no interested buyers because GM had been run terribly for years, had way too generous pension commitments, had lost market share gradually but consistently for over a decade, and the Hummer had completely blown up.
Beyond that, in early 2009, banks were being propped up themselves by bailouts. They simply did not have the capital to fund any buying of GM themselves, or to provide the cash and other capital for another potential buyer to make any realistic bid.
GM may crash in the long or medium run. If it happened tomorrow, it would be damaging to our economy, but it would do significantly less damage than it would have had GM failed and liquidated in early 2009.
Certainly the Chinese had the money to buy GM I would suspect they saw it as a bad investment.
Last edited by shorebaby; 02-15-2011 at 05:21 AM..
"General Motors still owes the U.S. government approximately $30 billion, with the government still owning around 30 percent of the Company. If the government were to sell its remaining holdings in General Motors at the IPO offering price, they would lose billions.
General Motors’ financing arm still owes the U.S. government an additional $15 billion."
I'm just trying to figure out who it is exactly that right wingers do not hate.
Their ***** up version of Chrisitianity
Money
White Supremacy
American Expceptionalism
Lower Taxes
Telling other people what they can do in their private lives.
Unlimited Corporate Power
That's just for openers.
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