Breaking News! (Just released 1-2 hours ago)
Bits & Pieces: 01/04/09
General Motors Corp. Filed for Bankruptcy
Following President Barack Obama’s decision that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, GM had, in the evening of 31 March 2009, officially filed for Bankruptcy protection. After a last-minute frenzied lobbying attempt by the GM Management team and the White House and the Congress failed to find a way of saving the company, GM, which was one of the World’s biggest company by market cap had officially gone bust.
Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can’t form an alliance with Fiat Spa, said members of Congress who have been briefed on the subject and two other people familiar with the administration’s deliberations.
While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the “quick and surgical” bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.
“Our focus is on accelerating the speed of our operational restructuring and reducing liabilities and debt on the balance sheet,” GM spokeswoman Renee Rashid-Merem said in an e-mail. “GM will take whatever steps are necessary to successfully restructure our company.”
Chrysler spokesman Todd Goyer didn’t immediately comment.
A panic sell-down in global equity market is expected today, to the extend not lesser than the Sept 16 collapse after Lehman Brothers failure, people familiar with the matters said.
General Motors Corp. Filed for Bankruptcy
Following President Barack Obama’s decision that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, GM had, in the evening of 31 March 2009, officially filed for Bankruptcy protection. After a last-minute frenzied lobbying attempt by the GM Management team and the White House and the Congress failed to find a way of saving the company, GM, which was one of the World’s biggest company by market cap had officially gone bust.
Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can’t form an alliance with Fiat Spa, said members of Congress who have been briefed on the subject and two other people familiar with the administration’s deliberations.
While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the “quick and surgical” bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.
“Our focus is on accelerating the speed of our operational restructuring and reducing liabilities and debt on the balance sheet,” GM spokeswoman Renee Rashid-Merem said in an e-mail. “GM will take whatever steps are necessary to successfully restructure our company.”
Chrysler spokesman Todd Goyer didn’t immediately comment.
A panic sell-down in global equity market is expected today, to the extend not lesser than the Sept 16 collapse after Lehman Brothers failure, people familiar with the matters said.
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6:34 PM
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