I guess "GM" stands for "Government Motors" after all. Obama's flip flops is further evidence that he plans on "fixing" our economic problems through socialism.

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

http://www.reuters.com/article/mergersNe...3120090519

Quote:In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

WTF? That's my money they gave them and no one asked me about forgiving the loans. I wonder if this would have occurred if the union wasn't one of the new owners?

.

Well one good thing has came out of the GM debacle .....

At least the Fed's can save at least $400 Billion coming up with a new Emblem to emblazon onto the Socialistic Auto Company das Communista.

You see they can simply keep the "GM Logo" .......

You know ..... "GM = Government Motors" ......

Ms. Peggy should be getting her new GM Socialistic Communist Automobile very soon and the poor thang has waited since November 4th for it !!!!!!!

.

(05-20-2009 06:38 AM)WMD Owl Wrote:  I guess "GM" stands for "Government Motors" after all. Obama's flip flops is further evidence that he plans on "fixing" our economic problems through socialism.

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

http://www.reuters.com/article/mergersNe...3120090519

Don't worry the Gubment will only be in this business long enough to give controlling interest to the UAW.

Quote:In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said

So basically the taxpayers JUST GAVE the UAW $15.4billion!!!

The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then. I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then. I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

neither did the liberals.

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then. I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

So it's ok to the UAW and to get $15.4 billion of taxpayer money, but the banks can't pay bonuses to employees because they have TARP money yup, that makes perfect sense to me.

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then. I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

If you're gonna cry over money thrown down the drain then I'm imagining you're going ape over Welfare, anti-gang programs, lousy teachers, union dues and any and all money spent on trying to cool the planet.

(05-20-2009 04:52 PM)THE NC Herd Fan Wrote:  So basically the taxpayers JUST GAVE the UAW $15.4billion!!!

No, the government just gave $15.4 billion to campaign contributors for the Democratic Party.

(05-20-2009 05:17 PM)smn1256 Wrote:  

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then. I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

If you're gonna cry over money thrown down the drain then I'm imagining you're going ape over Welfare, anti-gang programs, lousy teachers, union dues and any and all money spent on trying to cool the planet.

I'm just stating facts, dude. What you do with 'em is up to you...

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then. I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

Many times the ashtrays, $500 hammers and $600 toilet seats for P-3's are just ways to disguise supplemental spending on classified projects.

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then.

Au contraire...I took a job trying to undo some of that mess! I deplore the billions wasted on such corporate/white collar welfare. That's not to say get rid of all DoD spending, but I am most certainly unhappy about it and I actually take an active role in trying to reduce the waste.

Quote: I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

No we didn't b!tch, we were glad that they were caught. However, the no bid contract complaint has been shot down numerous times, what does it say when you can't let go of fiction?

Quote:But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

Not exactly the dawn of time. And I bet you will find plenty of conservatives who have expressed outrage. But, you can't shut your eyes and then say it never happens.

(05-20-2009 06:06 PM)DrTorch Wrote:  

(05-20-2009 05:01 PM)bitcruncher Wrote:  The taxpayers have been giving military contractors billions of unearned dollars every year, and you didn't b!tch then.

Au contraire...I took a job trying to undo some of that mess! I deplore the billions wasted on such corporate/white collar welfare. That's not to say get rid of all DoD spending, but I am most certainly unhappy about it and I actually take an active role in trying to reduce the waste.

Quote: I also didn't hear you b!tch!ng when Haliburton was caught charging for services they didn't provide on their NO BID CONTRACT...

No we didn't b!tch, we were glad that they were caught. However, the no bid contract complaint has been shot down numerous times, what does it say when you can't let go of fiction?

Quote:But stuff like that has been SOP for military contractors since the dawn of time. Or have you forgotten the ashtrays that were purchased for the USS Nimitz when it was first commisioned in the 1970s that cost several hundred dollars apiece?

Not one conservative said a word then...

Not exactly the dawn of time. And I bet you will find plenty of conservatives who have expressed outrage. But, you can't shut your eyes and then say it never happens.

Shaw Group, a Democrat favorite, obtained some of the Katrina Contracts on a no-bid basis, and they F'ed them up as bad as KBR did in Iraq.

The government contract padding isn't isolated to any one group or corporation. It's too widespread for any one group to lay claim. I saw how the Red Cross, and other organizations involved in the Katrina cleanup allowed consumables to rot while trying to figure out how to disperse them. Millions were wasted due to poor planning and execution, and that doesn't even start to touch upon corruption...