GM Bankruptcy to Be a Tale of Best of Assets, Worst of Assets

In the rosy scenario, the new company, armed with vehicles from GM’s Cadillac, Chevrolet, Buick and GMC divisions, plans to begin making money again within 60 to 90 days, while a bankruptcy court sells or liquidates unprofitable brands such as Saturn and Hummer. Saab already is in bankruptcy.

Chrysler LLC, GM’s smaller rival, is on schedule to create a similar new company even faster, stripped of billions in debt and stocked with viable vehicle models, with the approval of a bankruptcy judge in charge of its reorganization.

“They are clearly trying to clear a path for a very quick Chrysler-style case,” said Stephen Lubben, a bankruptcy-law professor at Seton Hall University School of Law in Newark, New Jersey. “They will use the bankruptcy code to separate ‘good GM’ from ‘bad GM.’”

In creating the good company, the U.S. plans to speed GM’s progress by turning more than $50 billion of loans into a 72.5 percent equity stake for the government, slashing company debt to about $17 billion, excluding financing obligations to suppliers and warranty programs, according to a regulatory filing yesterday.

http://www.bloomberg.com/apps/news?pid=206...id=azwLDwPkZ4ck

US 'Dilettantism' in Opel Negotiations? ( What does that mean ??? )

http://www.spiegel.de/international/busine...,627611,00.html

Shouldn't have any major effects...GM Thailand is incorporated under the laws of Thailand and a separate legal entity than the US GM. General Motors North America is the legal entity entering bankruptcy (and the Saab entity already in Sweden). All GM's problems are in the European and North American divisions and the European one (Open and Vaxhal [sp]) in Europe will be sold-off (with GM a minority owner likely), the North American part of GM will be radically restructured, and the Asian (China, Thailand, Australia) and Latin American (mainly Brazil) operations, which are doing fine and big profit makers for GM, will continue on as before as subsidiaries of the "new" GM.

GM Thailand has some problems specific to the economic slowdown in Thailand and export markets, but they are not tied to GM's problems in North America.

Edited May 29, 200917 yr by MeetJohnDoe

The Canadians will buy OPEL/Vauxall Europe, with money from the Russian banks.

Interactive maps: GM's sphere of influence wraps the globe

http://www.detnews.com/apps/pbcs.dll/artic...CIAL01/90529004

Interactive maps: GM's sphere of influence wraps the globe

http://www.detnews.com/apps/pbcs.dll/artic...CIAL01/90529004

interesting for one country. And for the globe?

Click on GMs global footprint button

Just a bit of nostalgia on Chevrolet which some of you may remember.

Re GM and Opel,

This is what is being reported here. Ireland.

GM will file for bankruptcy – US gov will bail them out.

Opel is sold off to, I forget the name.

German gov is financially supporting the new deal... Opel jobs in Germany

Vauxhall will not survive long term.

It’s a changing world.