May 11 (Bloomberg) -- General Motors Corp. reported that six
executives sold shares in the company, as the largest U.S. automaker
said it’s more probable than previously thought that it will need to
file for bankruptcy.
Vice Chairman Bob Lutz and North America President Troy Clarke sold
all their holdings in the Detroit-based company, according to
regulatory filings today.
The sales were in a window when such transactions are allowed,
following the company’s quarterly earnings report on May 7, said Julie
Gibson, a spokeswoman. The period may be the last for the executives
before the government-imposed June 1 deadline for GM to restructure or
file for bankruptcy, she said.
Chief Executive Officer Fritz Henderson made the comment about the
probability of bankruptcy on a conference call today. He declined to
specify its likelihood. Henderson also had said bankruptcy was “more
probable” on March 30, after former CEO Rick Wagoner was ousted by the
Obama administration, and made the same point in a conference call two
“It should be clear now where they’re headed,” said Mirko Mikelic, who
helps manage $19 billion, not including GM shares, at Fifth Third
Asset Management in Grand Rapids, Michigan. “There are too many
competing interests. They’re definitely going there. Everyone is
positioning for bankruptcy now.”
That is actually old news, you could get it on Yahoo a week or so ago. Many
of the execs sold off all they had.
Now that also makes me wonder why they are still there. GM bankruptcy
pending or not, an officer in the executive suite of board room should have
to hold a minimum number of shares. Because if they don't have those
shares, and they don't have faith, why shoud we?
GM is set to open almost 10% down today. Looks like the cat is out of the