Couldn’t we have just let them go into bankruptcy in the first place and saved American taxpayers BILLIONS of dollars?
In the Obama-nation, the government picks the winners and losers. If the government is bailing out, subsidizing, and otherwise propping up a FAILING business when it is unprofitable and poorly run, how can those who are being run smartly run hope to compete? This is just one part in the destruction of capitalism that has provided the most advances in technology and standard of living of any system or nation in the history of the world.
The Obama administration is weighing a “controlled bankruptcy” for General Motors Corp. if the floundering auto giant cannot meet government standards for viability by June 1, The New York Times reports Wednesday.
The move would fall somewhere between a prepackaged bankruptcy and a potentially chaotic legal battle between the company and creditors. It would involve persuading only some creditors to agree to a plan that would split the company into two pieces, sources familiar with the discussions told the Times.
In most prepackaged bankruptcies, all the creditors must agree terms, but the White House may circumvent that by financing the sales using taxpayer money, reports the paper.
Fritz Henderson, GM’s new CEO, indicated Tuesday that tougher government standards have made bankruptcy “more probable” than in the past.
Henderson said GM management was rushing to find ways to stave off that fate. It must slash billions in costs and debt in time for the Obama administration’s deadline.
The plan appears to resemble parts of the bank rescue plan – separating the company’s liabilities and bad assets from its profitable elements. Some specifics, according to the Times, include:
GM filing for prearranged bankruptcy.
Selling off valuable assets, such as Cadillac or Chevrolet, to a new company using government financing. This would apparently become GM’s new corporate face.
Leaving less desirable elements, like Hummer, with the old company.
Using revenue from the sales to pay off creditors.
The White House would hope to get support from the United Auto Workers union, which would likely be asked to make further concessions, but the law allows a judge to approve a sale over creditor objections, according to the Times.
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The Wide Awake Patriot 
(Overdue) “Controlled” Bankruptcy for GM
Couldn’t we have just let them go into bankruptcy in the first place and saved American taxpayers BILLIONS of dollars?
In the Obama-nation, the government picks the winners and losers. If the government is bailing out, subsidizing, and otherwise propping up a FAILING business when it is unprofitable and poorly run, how can those who are being run smartly run hope to compete? This is just one part in the destruction of capitalism that has provided the most advances in technology and standard of living of any system or nation in the history of the world.
White House May Seek “Controlled Bankruptcy” For GM
The Obama administration is weighing a “controlled bankruptcy” for General Motors Corp. if the floundering auto giant cannot meet government standards for viability by June 1, The New York Times reports Wednesday.
The move would fall somewhere between a prepackaged bankruptcy and a potentially chaotic legal battle between the company and creditors. It would involve persuading only some creditors to agree to a plan that would split the company into two pieces, sources familiar with the discussions told the Times.
In most prepackaged bankruptcies, all the creditors must agree terms, but the White House may circumvent that by financing the sales using taxpayer money, reports the paper.
Fritz Henderson, GM’s new CEO, indicated Tuesday that tougher government standards have made bankruptcy “more probable” than in the past.
Henderson said GM management was rushing to find ways to stave off that fate. It must slash billions in costs and debt in time for the Obama administration’s deadline.
The plan appears to resemble parts of the bank rescue plan – separating the company’s liabilities and bad assets from its profitable elements. Some specifics, according to the Times, include:
The White House would hope to get support from the United Auto Workers union, which would likely be asked to make further concessions, but the law allows a judge to approve a sale over creditor objections, according to the Times.
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Filed under: 9. Politics, Communism, Econonomics, Government, Marxism, Opressive Government, Socialism | Tagged: according, administration, agree, allows, ap, apparently, appears, approve, asked, assets, auto, bad, bank, bankruptcy, battle, become, billions, cadillac, capitalism, carty, CEO, chaotic, chevrolet, circumvent, comment, Communism, company, concessions, controlled, corp, corporate, costs, creditors, daniel, deadline, debt, desirable, discussions, elements, face, fall, familiar, fate, filing, financing, floundering, fritz, general, giant, GM, goals, Government, henderson, Hope, House, hummer, include, indicated, involve, judge, law, leaving, legal, liabilities, likely, losers, management, Marxism, meet, money, motors, Obama, objections, paper, parts, past, pay, persuading, picking winners, picking winners and losers, pieces, plan, play, post, potentially, prearranged, prepackaged, probable, profitable, reports, rescue, resemble, revenue, rushing, sales, seek, selling, separating, slash, Socialism, somewhere, sources, specifics, split, standards, stave, support, taxpayer, terms, times, told, tougher, Union, united, valuable, viability, videoplay, videovideo, ways, weighing, white, winners, workers, york | 1 Comment »