DETROIT (Reuters) - General Motors Corp said on Thursday it had reached a deal with some major bondholders that would give them a bigger stake in a reorganized automaker and could pave the way for a fast-track bankruptcy backed by the U.S. Treasury within days.
The announcement was the clearest indication yet that GM, the No. 1 U.S. automaker, is close to filing for bankruptcy under the direction of the Obama administration. It would be the biggest-ever bankruptcy for a U.S. industrial company.
Under the proposed deal, which is supported by major institutional creditors holding about a fifth of its debt, bondholders representing $27 billion in debt would be offered 10 percent of a reorganized GM -- the same stake they had been offered previously.
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The salaried workers get screwed, the bond holders get screwed, the taxpayers get screwed, but the UAW makes out great.
ReplyDeleteDon't beleive any of the UAW propaganda about all the deep concessions they've had to swallow. The UAW lost Monday after Easter as a holiday, but keeps good friday.
What happened to a free country where the market decides the fate of a business!
The unions killed the automotive industry. Not the recession. GM and Crystler weren't able to adapt to the slowing economy and should have been able to cut cost by laying off employees to survive the down turn but weren't able to with the union contracts. I hate to see people lose jobs but I would rather see a percentage lose a job then the everyone. What happened when the employees wanted to unionize dresser? They moved... A company can't compete with other non-unionized companies because of higher cost.
ReplyDeleteSpeaking as a 55 year old "Chevy" man, I just went Toyota. John Barleycorn must die.
ReplyDelete