GM to file for chapter 11 bankruptcy protection?

[Falcon Freak]

Click here for article (http://www.heraldsun.news.com.au/common/story_page/0,5478,17054482%255E1702,00.html)

Bad news if it is true.

FF

[DCJ81]

Filing for chapter 11 bankruptcy is not always bad news. The company that I’m working for now has been under chapter 11 for over 18months now. I think it’s an effective way for some companies to get out of large settlements and the or something like that.
By no means I’m not expert on this though, I’m just a drafter


Dave

[Jac001]

Definitions of chapter 11:

A reorganization bankruptcy, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.


http://www.google.com.au/search?hl=en&lr=&oi=defmore&defl=en&q=define:chapter+11

[BA$TAD]

wow they're in a much worse situation than i thought. wonder how much longer till Ford fall like this.

[Ausmartin1]

http://www.jibjab.com/Movies/BoxMart.aspx

Go to the above and that says it all - it's a spoof on Wal mart

With Free trade going to a slave labour country like China
you are suprised ?

Wait till the USA will become just an assembly plant with Australia to follow
It certainly appears that way when you see whats going on - plus if you read those future statements from manufactures - Even Volkswagen wishes to use more than 90% content in it's Chinese cars - but wait - It wishes also high chinese % content for it's German assembly plants. German designed made in China. What about GMH once South Korea becomes too expensive the current managment has flaged China as next source. - Read back issues of GoAuto if you can.

Free trade my a$$ when our prisioners and non skilled people work for free, yes it will be a level playing field! :o

[the big fist]

With Free trade going to a slave labour country like China
you are suprised ?

Wait till the USA will become just an assembly plant with Australia to follow
It certainly appears that way when you see whats going on - plus if you read those future statements from manufactures - Even Volkswagen wishes to use more than 90% content in it's Chinese cars - but wait - It wishes also high chinese % content for it's German assembly plants. German designed made in China. What about GMH once South Korea becomes too expensive the current managment has flaged China as next source. - Read back issues of GoAuto if you can.

Free trade my a$$ when our prisioners and non skilled people work for free, yes it will be a level playing field! :o


it already is like this.
the real question is do you want as a consumer want to pay an extra $20K for a product so that you can say an australian fabricated it ?
The tonnage rate of steel alone is almost half what we pay here !

[dave_au]

It's really just corporate re-organisation while under relief from creditors seizing any claims. However, it means that your going to have a very big shakeup and the entity will most likely more than not be very different to what it was before.

The word "bankruptcy" has negative connotations, and most people consider chapter 11 to be just a form of bankruptcy. In reality, however, the conventional meaning of the term "bankruptcy" does not apply to chapter 11.

Chapter 11 provides the debtor a vehicle for operating its business under protection from its creditors while developing a plan for resolving its financial problems. In a successful chapter 11 case, the debtor is able to have a plan of reorganization confirmed that enables the debtor to operate successfully in the future, free from the burdens that precipitated its chapter 11 filing.

In general, a chapter 11 plan is a contract among the parties in interest in the debtor’s chapter 11 case. If accepted by the requisite majorities of each class of affected creditors and equity owners and confirmed by the Bankruptcy Court, the plan is binding on all affected parties, even if they did not vote in favour of the plan. In certain circumstances, a plan may be confirmed even if some (but not all) classes do not accept the plan.

However the big question would be, if GM is re-organised, are they going to sell off any of their subsidiaries? GM just sold off their controlling share in Fujitsu Heavy Industries, the parent company of Subaru to Toyota.

Would GM be willing to keep one of its few performing divisions, Holden, when Holden's profits are moddest in the big scheme of things? Likewise, could Opel, Vauxhaul and SAAB soon have a for sale sign? They could potentially offload some of these companies to DaimlerChrysler or Toyota.

[VX11SS]

This is really about shedding their union pension plans which if they have to pay out in the next few years will definately drive GM under.
Chapter 11 will allow them to get get rid of all pension claims plus a few other things and hopefully thet=y cvan comeback stronger than ever. saying that I would be pissed if i was a GM USA employee but it does eem that their pension scheme is unbelievebly good
Cheers Jay

[Pickles]

Very, Very interesting!! The very fact that GM is feeling the need to do any of these things is a worry. "Where there's smoke, there's fire", I say.
Cheers, Pickles.

[Evil LS1]

Filing for chapter 11 bankruptcy is not always bad news. The company that I’m working for now has been under chapter 11 for over 18months now. I think it’s an effective way for some companies to get out of large settlements and the or something like that.
By no means I’m not expert on this though, I’m just a drafter


Dave


It can mean very bad news for it's employees superannuation or pension plans and long service leave etc. I know I'd jump ship if my company indicated it was going chapter 11.