GM Locked, Loaded And Ready For Bankruptcy
After five months and $19.4 Billion in federal aid, three restructuring plans, and the removal of one CEO, General Motorsis locked, loaded, and ready to file for Chapter 11 Bankruptcyprotection on Monday.
If you are still one of those holding out hope that GM can avoid restructuring in court, it's time to face the music. General Motors is about to go through bankruptcy.
So why is everyone ticked off?
GM employees, retirees, dealers and customers are not happy. Bankruptcy will mean more jobs are cut, more belt tightening, and put even more stress on an already beaten down company.
Bondholders and investors are ticked off. Even with the sweetened debt-exchange deal, bondholders are taking a hit. Mutual funds, state pension funds, and large investment groups that held GM bonds have all taken a big hit.
Fans of the Big 3 are despondent. Bankruptcy usher in an era where GM likely loses the top spot for sales in the U.S.
Critics of the Big 3 are irritated. Despite the massive cuts among the Detroit 3 (since 2005, GM, Ford, and Chrysler have cut a quarter million jobs), critics think bankruptcy just keep these dinosaurs limping along.
Politicians are skeptical of the bankruptcy move. Many think the Obama Auto Task Forceis going too far and trying to run America's auto industry.
Tax payers are p-o'd at how much fixing GM will cost. $50 Billion ($19.4 already given to the company and another $30 expected in Chapter 11) is a staggering sum and many tax payers doubt GM will ever pay it back.
While I understand many of these complaints, I'm also baffled at the fact few of these people have better suggestions for how to handle GM.
The employees think the cuts are going too far.
Bondholders want more money.
Big 3 fans think GM is being railroaded into court.
Critics claim GM should have gone bankrupt back in January.
Politicians don't like want the government involved in GM, unless means saving jobs in their district or state.
Tax payers think the government shouldn't spend a nickel more on GM, even though there is no other bank or entity that has the money for bankruptcy financing.
So you tell me. Tell me what exactly bothers you about GM going into bankruptcy - write me here at BehindTheWheel@cnbc.com.
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