GM news for the week is almost certainly guaranty bankruptcy.
Discontinuing dealerships is bound to send a flury of lawsuits GM's way that
can only be stopped by a chapter 11 bankruptcy. Just another GM piece of
paper not being honored to add to the pile.
Bond holders rightfully so, think less than 1 cent on the dollar is GM
theft. They are right too. If they force a 100% liquidation of GM, they
will profit and geta much higher return of their moneys. Very dangerious
situation GM is now in on this. GM aught to think about if it will exist,
forget about chapter 11.... That $27B is going to send them under and it is
due! Which means the lawyers will rush to court on June 1st to lay claim.
The judge will have no choice but ot say to GM, pay these people their money
or go bankrupt.
Then there is the CAW. In negotiations all week, CAW stated they were not
even close and Friday was the deadline. CAW is playing with fire:
I figure today the CAW are playing chicken with reality and statements are
being prepared as Canada's politicians were ready to sell out taxpayers $10B
contingent to CAW-GM agreement. In short, GM Canada just went bankrupt
because politicians and now eating the heat for the wasted taxpayers cash
and squirming like roddents on a hot plate. They don't want their names
associated with renaming GST to GM Sales Tax and no jobs. And it is only
7500 jobs, pretty expensive bailout no one wants to touch and is looking for
a way out.
GM closed Oshawa truck plant to send CAW a message. But in fairness, living
in Canada is expensive as it gets, and certainly more expensive than the
USA. That means people have to make a good buck or admit they are
indentured tax sheeples. But the years of voting statism and for debt
ridden businesses and government is now coming back to haunt the sheep. But
the next genertion will find housing in Oshawa more affordable.
Chrysler just closed out in Canada and no one noticed.
Those part shortages will hit GM next week, no cash, no parts. While Magna
got some taxpayers money, they are going overseas with it. From here on in,
no cash no parts. GM is going to have to find a way to restart the accounts
recievable department or they simply will be gone. But my guess is everyone
knows this will not happen.
GM plays the victim, but in reality they are the perpetrator. During fat
years the management and unions took what they could, GM just accumulated
debt. Then a downturn, they had no reserve and now are not paying suppliers
who also need to eat. In reality this devil is going down and will shortly
be out of taxpayers pockets.