GM Bankruptcy
07-06-2009, 08:47 PM
#94
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Join Date: 01-24-2008
Location: USA
Posts: 725
No, they are not owned by the government. They have received loans from the government, of which we the taxpayers are now "stockholders". Unlike some of the earlier bailouts in which there were no strings attached, there are strong ropes in this case. They have been given a new lease on life and they have today received approval to sell their assets to a newly created company - assuming it stands up on the appeal. Eventually, they will be a new stronger company.
This was done with Chysler in the '80s and the government was repaid what was owed. It would seem that GM will have the same success being that they have shed a load of debt, bondholders and stockholders lost out (as is normal in the world of risk/rewards). The government only gave them the operating cash to get it through this mess.
This was done with Chysler in the '80s and the government was repaid what was owed. It would seem that GM will have the same success being that they have shed a load of debt, bondholders and stockholders lost out (as is normal in the world of risk/rewards). The government only gave them the operating cash to get it through this mess.
07-06-2009, 09:51 PM
#95
No, they are not owned by the government. They have received loans from the government, of which we the taxpayers are now "stockholders". Unlike some of the earlier bailouts in which there were no strings attached, there are strong ropes in this case. They have been given a new lease on life and they have today received approval to sell their assets to a newly created company - assuming it stands up on the appeal. Eventually, they will be a new stronger company.
This was done with Chysler in the '80s and the government was repaid what was owed. It would seem that GM will have the same success being that they have shed a load of debt, bondholders and stockholders lost out (as is normal in the world of risk/rewards). The government only gave them the operating cash to get it through this mess.
This was done with Chysler in the '80s and the government was repaid what was owed. It would seem that GM will have the same success being that they have shed a load of debt, bondholders and stockholders lost out (as is normal in the world of risk/rewards). The government only gave them the operating cash to get it through this mess.
Oh, I thought an existing company owned by the government bought them. I guess I read it wrong.
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