GM Bankruptcy Plan Calls For QUICK Sale To GOVERNMENT

GM BANKRUPTCY PLAN CALLS FOR QUICK SALE TO GOV’T
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.

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Wild Thing’s comment…….
First paragraph: NEW YORK (Reuters) – If General Motors Corp files for bankruptcy, as widely expected, plans include a quick sale of the automaker’s healthy assets to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday.
If someone told me that Obama would nationalize the banks and the auto industry in his first 150 days, I would have thought them crazy. This is truly astonishing.
The article talks about creating a new company, and the gov taking over GM then selling to this “new” company any “healthy” assets. Guess this means the “unhealthy” assets would twist in the wind or be transferred to the same imaginary hole where the gov is storing the “toxic” assets it bought. Healthy assets will be handed off to the UNION!!! The plan is not to save GM but the labor unions.
Just like in Britain after WW-II, major industries were forced to sell themselves to the government. These government run British industries, like coal mining, were run with enormous deficits solely to benefit the unions and crippled the British economy for decades. It took Margaret Thatcher to undo this mess and restore at least some sanity to the British economy. Let us hope we can have another Thatcher or Reagan to quickly lead us out of this mess.
I really believe these people have been planning this stuff for a long time. The reason Obama is not getting the
day to day stuff of filling cabinet positions done is he has a huge agenda that he needs to shove through, not just govern as he is supposed to.
Obama is the most dangerous THING our country has ever had. Even the terrorists do not make me afriad like Obama does.