Still lots of smoke and dust out there, but here's an interesting article.
The Obama administration is seeking to ease General Motors Corp into a "controlled" bankruptcy by persuading some creditors to agree to a plan that would divide the company into two pieces, the New York Times reported on Wednesday.
The Feds will take on 'debtor-in-possession' financing. That part doesn't bother me, but this does:
Under the plan, GM would file for prearranged bankruptcy, the report said, and would then use a sale authorized under Section 363 of the U.S. bankruptcy code to sell off desirable assets to a new company financed by the government.
These more valuable assets might include Cadillac and Chevrolet, as well as assets the company needs to run its business, the Times said
"Financed by the Government"?? No 'common' or 'preferred' shareholders, like mutual funds, pension plans, Joe and Susie Mainstreet? No bonds/bondholders?
AND the Gummint plans to keep Pontiac, Buick, Hummer in BK protection. That's OK, I guess--but to what end? Sale? Revival?
I also saw nothing regading the restructuring of the Union contract. If that doesn't happen, there's no reason to even bother with bankruptcy.
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