Law and Rights
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.
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 Default Likely, S&p Says
Standard & Poor, the people who rate the credit status of corporations, has cut GM's rating deeper into junk value because its assets are shrinking, sales are light and debt is not being reduced, according to S&P. Although S&P predicts...
- Rv Industry Collapsing ?
Last year several Rv builders went out of business and this year things aren't looking any better. So far, Country Coach, Monaco Coach and Fleetwood have all filed bankruptcy (of one kind or another). Who's next? That's become the name of...
- 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 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.
People's jobs are at stake, to say nothing for Detroit prestige, and money is all that seems to matter to the bond holders who could save it all.
GM and others are pushing for a "surgical" bankruptcy that could put GM into bankruptcy court on a "preplanned" approach that would go into court with the intention of getting, in advance, the agreement of enough creditors to quickly pull livable pieces of the corporation out of bankruptcy and leave unprofitable pieces to their bankruptcy fate. The goal would be to get the profitable pieces out of court control in a matter of weeks.
But bankruptcy experts are saying it likely wouldn't be less than 6 months before bankruptcy court lets go of any pieces of the GM pie. A good example? The musings of many when Delphi was headed into bankruptcy court just before it filed in October 2005. It's still there.
GM wants its monied bond holders to cut two thirds of the debt by swapping bonds for GM shares but they aren't buying it. Given the recent trading history of GM stock, no one can blame them. A buck sixty eight a share in the afternoon of April 20, 2009. Whoddathunk?
None of this is shaking out too good for GM or Detroit. It won't be pretty for GM owners either. If your car is still covered by warranty, and you've got defects, better get it to the shop pretty soon, while dealers are still willing to honor the GM warranty. Once a bankruptcy is filed by GM, it's anyone's bet on what will happen next.
Burdge Law Office
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 Default Likely, S&p Says
Standard & Poor, the people who rate the credit status of corporations, has cut GM's rating deeper into junk value because its assets are shrinking, sales are light and debt is not being reduced, according to S&P. Although S&P predicts...
- Rv Industry Collapsing ?
Last year several Rv builders went out of business and this year things aren't looking any better. So far, Country Coach, Monaco Coach and Fleetwood have all filed bankruptcy (of one kind or another). Who's next? That's become the name of...
- 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...