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GM More Open to Bankruptcy

Wall Street Journal Original article ›

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GM management is now considering government supported bankruptcy as a serious option, after insisting for months that that would not work, and that it would affect the whole supply chain. This comes as GM's auditors raised "substantial doubt" that GM could operate as agoing concern considering its state of finances. Prices on GM's bonds are down to less than 20 cents on the dollar, for GM's $3 billion 30 year bond. according to Thomson-Reuters. Under bankruptcy GM's entire debt load could be reworked and bondholders would see it in their interest to make necessary concessions for this to happen. Also the franchise overhaul could proceed on the retailing side. A prepackaged bankruptcy would typically be accomplished in afew months.

GM in 2009- the months before bankruptcy

03/06/2009

Grouped Articles

GM More Open to Bankruptcy

Wall Street Journal 03/06/2009

The Good, Bad And Ugly of GM

Wall Street Journal 04/14/2009

A Saga of Decline and Denial

Wall Street Journal 06/02/2009


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