It seems like The Wall Street Journal and other major business news outlets have been reporting that General Motors' (NYSE: GM) bankruptcy is "a virtual certainty" every single day for the past few weeks. But now Bloomberg has an actual date: June 1.According to Bloomberg, GM "plans to file for bankruptcy protection on June 1 and sell most of its assets to a new company, people familiar with the matter said." Some of GM's largest bondholders have also agreed to a debt-for-equity swap, and this bankruptcy filing could be something close to a pre-pack by the time all the details are sorted out on June 1.
The bankruptcy is expected to last just 60 to 90 days, with most of GM's assets being sold to a new "good" company, free of the liabilities that have strangled the old GM.
Speaking at an industry luncheon, vice chairman Bob "The Putz" Lutz said that "We intend to get in and out very soon. The U.S. government wants its money back, and our plan is to pay it back as quickly as possible. The U.S. government doesn't want to own auto companies."
This from a guy who dumped his entire stake in the company last week and knows full well that those loans won't be paid back because they've been converted into equity -- and clowns like Mr. Lutz will be charged with engineering a turnaround.
Speaking at an industry luncheon, vice chairman Bob "The Putz" Lutz said that "We intend to get in and out very soon. The U.S. government wants its money back, and our plan is to pay it back as quickly as possible. The U.S. government doesn't want to own auto companies."
This from a guy who dumped his entire stake in the company last week and knows full well that those loans won't be paid back because they've been converted into equity -- and clowns like Mr. Lutz will be charged with engineering a turnaround.
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Reader Comments (Page 1 of 1)
5-29-2009 @ 12:25PM
ROCKY-TIGER KING said...
ROCKY_0717@YAHOO.COM
5-29-2009 @ 12:10PM
Iridium said...
I think we should all be allowed to do this. I'll create a good me and a bad me.
The good me gets to keep my house, car, and fancy toys. The bad me gets all of the debt. The bad me is bankrupt and the good me gets all my stuff with a clear sheet and no debt.
The best thing is I still have my house, my car, and all my fancy toys and I don't have to pay for them anymore. When the IRS and creditors come to collect I just say, no you are looking for the bad me. He holds all the debt. Go find that guy.
5-29-2009 @ 12:24PM
ROCKY-TIGER KING said...
ROCKY_0717@YAHOO.COM
5-29-2009 @ 12:18PM
ROCKY-TIGER KING said...
ROCKY_0717@YAHOO.COM
5-29-2009 @ 2:00PM
stanley len said...
The putz is out of touch with reality GM needs new thinking Why have they let some old guy who can barely talk lead GM back
5-29-2009 @ 4:23PM
babyraymond8 said...
You are seeing the results of NAFTA!!!
5-29-2009 @ 4:42PM
bartulski said...
Hey shareholders now that your stock will be worthless come monday morning dont buy a general motors product in the future. Why suppport the new owners, a government and union owned company that helped destroy it.
We shareholders will get no ownership not even a recommended 1% or a say in the company. My protest will be to get rid of my Cadillac and Malibu, will never buy a GM product again. I will purchase a Ford or Toyota productin the future. Have you thought about doing the same thing!
5-29-2009 @ 7:04PM
Gene Ammirata said...
Thank you Pres. Clinton NAFTA was a rousing success!!