07 Apr
Posted by charles as Journalism, News, commentary
If what is good for GM is good for America (the old axiom)–then maybe America should just declare bankruptcy and get it over with! Seems that, according to reports, General Motors is in what is being called “intense” and “earnest” preparations to file chapter 11.
According to a Reuters report, the contemplated plan would halve the company into one comprised of its “most successful units” and one made up of all the rest.
Of course, going into bankruptcy for a company the size and complexity of GM is a highly risky move with no real guarantee that it will ever emerge in tact.
Can break agreements
A bankruptcy filing would allow GM to effectively abrogate contracts with its dealers, unions and suppliers…not exactly the best way to create good will, though, perhaps, better than simply pulling a total vanishing act?
But it also would mean that instead of key decisions being made by GM executives flying around in private Cessna jets, most important decisions would be made by some judge driving around, probably in a Ford!
The thing is, GM is running out of both time and money and the government will apparently push it into bankruptcy unless it can pull a rabbit out of its glove compartment and demonstrate it finally “gets it” and makes sweeping changes.
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5 Responses
Gary Baumgarten
April 10th, 2009 at 9:52 am
1Clearly the administration is encouraging GM to seriously look at the possibility of filing.
I agree that, while far from the best solution, anything that potentially leaves the bulk of GM intact is better than the alternative.
Ralph Adamo
May 31st, 2009 at 10:21 am
2The General Motors bankruptcy is virtually a done deal. The writing was on the wall when the Treasury Department hired Matthew A. Feldman, a partner of Willkie Farr, to joing the Obama administration. This happened at the end of March 2009. Since then the Chrysler bankruptcy has been sailing through. And now Feldman is focusing on bankrupting GM. The filign will be in the Bankruptcy Court of New York, which is well-known among attorneys as the bankruptcy rubber-stamping capital of the world.
However, none of this means that bankruptcy is GM’s only reasonable alternative, or that it is the best thing to do. It is simply an expedient way to avoid responsibility. Big business thought that it was just fine when they changed the laws a few years ago to make it MUCH MORE DIFFICULT for Americans to declare bankruptcy and shed debt. (They did this, of course, by paying off the politicians, including the Democrats, to vote their way.) Now big business is at it again, screwing the shareholders and the various merchants that are owned money from GM.
Who says crime doesn’t pay?
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June 2nd, 2010 at 2:18 pm
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December 17th, 2010 at 9:34 am
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bankruptcy attorney Baltimore
January 6th, 2012 at 4:49 am
5This is an unfortunate event and I do hope that more business owners will become vigilant in maintaining the quality of their products and avoid cases that might be filed against them. You can ask marketing or financial experts if you can still keep operating your business or if it would be better just to file for bankruptcy.
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