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- Gm Predicted To File Bankruptcy Any Day
As of late afternoon on May 26, 2009, sources involved with the GM restructuring are saying it's all but over with. GM had to get 90% of its bondholders to accept its "debt for equity" swap to avoid filing the largest ever industrial bankruptcy in...
- Gm Gets Surgical
Doubt continues to grow on whether or not GM can avoid bankruptcy very soon. GM is backed into a corner with its well-heeled bond holders not budging and too many creditors clamoring for cash while the feds while away the hours on the doomsday clock....
- More Rv Companies Bite The Dust
2008 was a bad year for the Rv industry. Some companies merged, sold off assets, closed or filed for bankruptcy protection. If you're thinking of buying a motorhome, you need to be careful of the viability of the builder to stand behind their product....
- Danger Of Bankruptcy
Whether Detroit's Big 3 get their bailout or not, consumers need to know what it can mean to them when a business files bankruptcy on their claim or their lawsuit. Recent reports of the bad economy undoubtedly worry consumers about the risk that the...
- National Rv Files Bankruptcy
If you own a National RV motorhome still covered by warranty, you've got trouble. The day after the "National Rv Trade Show" came to an end in Louisville, factory reps from all over the country packed their bags and headed home. Things were different...
Law and Rights
GM Auditors in a Panic ?
It's official. Associated Press is reporting that GM's auditors (the number crunchers) have released their report on the health of GM and it's not good.
"The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern," Deloitte & Touche LLP's auditors wrote in their report.
GM's stock promptly took an 18% dive, taking its $1.84 down to within pennies of Ford's own dismal $1.82. Folks, what we have is trouble in River City and no one's singing in the rain.
It's turnaround plan includes laying off some 47,000 workers by the end of 2009 and getting billions more in bailout loan money, dumping unprofitable brands, restructuring debt and getting both creditor and union concessions.
GM readily admits that filing bankruptcy, even a chapter 11 "restructuring" kind, would likely scare off consumers who would doubt that the company would be around long enough to honor warranty claims. In the Rv industry, companies like Alfa Leisure and Country Coach have taught those lessons.
Will GM last in its present form? Probably not is our prediction. Will it mirror the breakup of ATT into all the "baby Bells" of decades ago, with each make becoming its own independent company? Could be. Do you want to buy some GM stock while it's cheap? Probably not.
If you're a consumer with a GM car or truck and you've got defects, now's the time to get it in the shop, while the dealer is still getting warranty claims paid for. When that stops, your dealer is likely to stop working on defects for free too.
You can watch the news report on GM's auditor report by clicking here, if you can stand it. It's time to watch your dollars very, very carefully, folks.
Burdge Law Office
http://www.newcarlemonlaw.com/
Helping Consumers Protect Themselves Since 1978.
Subscribe in a reader- Gm Predicted To File Bankruptcy Any Day
As of late afternoon on May 26, 2009, sources involved with the GM restructuring are saying it's all but over with. GM had to get 90% of its bondholders to accept its "debt for equity" swap to avoid filing the largest ever industrial bankruptcy in...
- Gm Gets Surgical
Doubt continues to grow on whether or not GM can avoid bankruptcy very soon. GM is backed into a corner with its well-heeled bond holders not budging and too many creditors clamoring for cash while the feds while away the hours on the doomsday clock....
- More Rv Companies Bite The Dust
2008 was a bad year for the Rv industry. Some companies merged, sold off assets, closed or filed for bankruptcy protection. If you're thinking of buying a motorhome, you need to be careful of the viability of the builder to stand behind their product....
- Danger Of Bankruptcy
Whether Detroit's Big 3 get their bailout or not, consumers need to know what it can mean to them when a business files bankruptcy on their claim or their lawsuit. Recent reports of the bad economy undoubtedly worry consumers about the risk that the...
- National Rv Files Bankruptcy
If you own a National RV motorhome still covered by warranty, you've got trouble. The day after the "National Rv Trade Show" came to an end in Louisville, factory reps from all over the country packed their bags and headed home. Things were different...