With GM’s June 1 government-imposed deadline just around the corner, we’ve been hearing a lot about the struggling Detroit automaker’s road to bankruptcy. The pending Chapter 11 filing is considered to be the largest bankruptcy ever for a U.S. industrial company so there is no surprise that we’ve been getting bombarded with news related to the subject.
So instead of bothering you every 5 minutes with bankruptcy talk we thought we’d gather it all up in our today’s edition of Miscellaneous Thoughts.
Updates: So far we’ve heard the following:
GM bondholders reject offer, bankruptcy preparations are now on
U.S. to inject and additional $50 billion in GM
German officials end Opel talks without a deal
Major GM bondholders agree to a new sweetened deal
Warren offers GM long-term tax incentives to move headquarters
Government to swap $40 billion for GM Stock: A government official said that the $17.4 billion given to GM in the first three months of 2009 “unfortunately didn’t accomplish anything.” Nonetheless, the government is still going to exchange about $40 billion in loans to GM for company stock. The U.S. Treasury is expected to lose $7 billion in loans it made to Chrysler as well. – Detroit News
GM pays workers early to ease bankruptcy fears amongst employees: The General handed out 90,000 U.S. employees their paycheck three days earlier this week reassuring them that bankruptcy wouldn’t hurt their wage payments. “It was done to reassure employees worried about bankruptcy,” said spokesman Tom Wilkinson said. – Reuters
GM declines to name dealers on the cut list: GM has declined to identify the 1,124 dealerships whose contracts it does not intend to renew when they expire Oct. 31, 2010. However, others are doing all they can to expose the list. Edmunds has complied its own list which you can check out here.
– By: Omar Rana