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denem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-22-09 12:30 PM
Original message
GM prepares for bankruptcy
Edited on Fri May-22-09 12:36 PM by denem
Source: Reuters

DETROIT (Reuters) - General Motors Corp won a cost-cutting deal from its Canadian labor union on Friday, part of a package of concessions the automaker is expected to take into a federal bankruptcy court by the end of this month in a showdown with its bondholders.

GM's tentative agreement with the Canadian Auto Workers union comes a day after the embattled automaker won parallel concessions from its major union, the United Auto Workers.

The deals to cut operating costs at GM's North American factories help clear the way for the automaker to be steered into bankruptcy with the backing of the Obama administration if a longshot attempt to win over bondholders fails.

GM has been kept in operation since the start of the year with more than $15 billion in emergency federal loans and has said it will need billions of dollars in additional financing if it moves into bankruptcy.

Read more:

GM bondholders, who hold about $27 billion of the company's debt, have balked at the terms they have been offered which would give them a 10 percent stake in a restructured company.

By June 1, the Obama administration can wish GM 'mission accomplished' with another $30 billion of federal funds blowing in the wind.
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DonCoquixote Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-22-09 01:33 PM
Response to Original message
1. Mission accomplished my arse!
General Motors is bankrupt because greedy wall street types wanted it to go bankrupt no matter how much money would be thrown at them, because China is ready to throw even more money at them, and offer dirt cheap labor. Obama could have offered them a trillion dollars, but that would not have stopped them from the ultimate goal, to KILL UNIONS!
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denem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-22-09 01:39 PM
Response to Reply #1
2. Mission Accomplished? Perhaps I should have used a sarcasm tag.
You do know the lineage of the term don't you?
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TheWatcher Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-22-09 02:35 PM
Response to Original message
3. YAY! The Recession Is Over!
The Worst That Could Possibly Happen Has Come And Gone!

Dow 1,000,000 Here We Come! :crazy:
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