Late yesterday, U.S. Bankruptcy Court Judge Robert Gerber approved the sale of General Motors to a new corporation, which will allow the company to come out of bankruptcy as early as Thursday.
The new company will be owned by:
The United States government—a 60.8 percent stake
A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent
The governments of Canada and the province of Ontario—11.7 percent
Bondholders of the old GM—10 percent.
Objectors, who included people ranging from consumer groups to bondholders, failed to present a viable alternative to the bankruptcy, the judge said. He allowed a four day stay of the sale until Thursday afternoon for appeals. Friday, July 10, is the last day the U.S. Department of the Treasury has agreed to extend any loans to the old GM.
GO HERE to read more.
The new company will be owned by:
The United States government—a 60.8 percent stake
A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent
The governments of Canada and the province of Ontario—11.7 percent
Bondholders of the old GM—10 percent.
Objectors, who included people ranging from consumer groups to bondholders, failed to present a viable alternative to the bankruptcy, the judge said. He allowed a four day stay of the sale until Thursday afternoon for appeals. Friday, July 10, is the last day the U.S. Department of the Treasury has agreed to extend any loans to the old GM.
GO HERE to read more.
10 comments:
Obama is the worst President this country ever had !
Viable alternatives? How bout zero for your stock? How short the memory of the American people is. Remember we bought this company with billions of axpayer dollars. Damn right the US is the majority shareholder, not by choice, by purchase and sale.
Hail Hitler!!
This story represents an incredible event in which our government took tax money which we haven't even made yet, much less paid, and gave it to a corporation. This is a corporation who was bankrupt. It is also a corporation who enjoyed tremendous benefits as a corporation for many many years. Many of the benefits it (its corporate officers and management) enjoyed were excessive hence, the bankrupt condition of the corporation. It had been looted long before it came asking our government officials (who are supposed to represent us - the tax payer) to "loan" it some money. All of the deals it had made over the years with suppliers, workers, etc were now null and void. It is the same corporation who advertised with millions of dollars to us - the taxpayer - to buy an auto from it, at a profit. The whole matter stinks. Our government officials never looked out for our interest. A bunch of people became hugely rich from their involvement with this corporation. How on earth can a government of the people, for the people, and by the people, get involved with a for-profit corporation? This is no longer the America we once knew and loved.
Here's my question... If the other two major American automakers manage to stay above water on their own, how will they be able to "compete" with "Government motors"? Certainly won't be on the same set of base rules, and certainly will involve "risk", which GM will not have to worry over.
All together now, say ...."SOCIALISM"
5:03
Great point! Why hasn't Ford Motor Company cried foul? They must be thinking "how badly do we have to beat these guys, before they finally go bankrupt?"
Ford should be complaining to no end, about the bailout. It is totally unfair to them. These are FOR-PROFIT corporations.
The government took tax income from employees, stockholders and corporate executives of Ford Motor Company and gave it to GM.
And Ford doesn't even complain.
The government should never buy a company to save it in a Capitalist Nation how ever when that company pays for campaigns and is full of union workers we all have to pay. Were all forced to help one political party.
Anyone who thinks this is a good idea should read some history books and I dont mean textbooks.Just look at the countries who have "national companies"....China,India,etc.The irony?Private companies in the same business lines are more productive at a lower cost than the "nationals".
The last laugh is on GM though.All that "cash for clunkers" stuff will not help them one iota because everyone buying new cars are buying Toyotas and Hondas!Serves em right.
Weren't priority shareholders ignored in this process? At least that's what I had read. That means the White House determined who benefited from this bankruptcy. Normally there is a set procedure of who has rights in a bankruptcy filing. Not here.
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