Where are the fart-misting protesters when you need them?
"GM Files for Bankruptcy Protection" by Peter Whoriskey, Washington Post | June 1, 2009
WASHINGTON -- General Motors filed for bankruptcy protection this morning, marking the end of financial independence for the 100-year-old industrial leviathan that once conflated its interests with the country's and -- counting jobs at the company and its suppliers -- employed well over 1 million people...
The United States will invest another $30 billion during and after the GM bankruptcy process, officials said last night, bringing the U.S. commitment to $50 billion.
That is ALL YOUR MONEY, taxpayers -- so GM can close factories here and open them overseas!
Under the proposed restructuring, about 60 percent of the new GM would be owned by the United States, about 12 percent by the governments of Canada and Ontario, a union health trust would own 17.5 percent, and the company's current bondholders would get 10 percent.
But as the administration builds the case for another massive infusion of government money into the automaker, it is also dealing separately with accusations that its plan unfairly favors the United Auto Workers at the expense of the company's investors....
Pfft! Yeah, right, WORKERS were FAVORED!!!
If that had been the case, they WOULD NOT have had to OPEN UP the CONTRACT!
About $27 billion in GM bonds are held by institutions and individuals. They have been asked to give up those bonds in exchange for 10 percent ownership in the restructured company, along with the right to buy a larger stake later.
The retiree health fund of the United Auto Workers, by comparison, is owed $20 billion by GM. In exchange for that claim, the retiree health trust is being asked to accept a 17.5 percent stake in the company, as well as $9 billion in notes and preferred stock.
How about a BAILOUT for the WORKER'S HEALTH?
After all, it is "only" $20 BILLION!!!!
Critics say it is unfair that the restructuring plan gives the union health trust a larger share of the new GM than the bondholders....
Really? WHICH "critics?"
Btw, I'm not sure whose getting the better end of that deal; WHO would WANT to OWN SHARES of GM now?
Of course....
Translation: You can lead a horse to water, but....
"The only difference here is that you have the government playing the role of the vulture investor," Ross added. "They are the only ones willing to make this investment, so they're calling the shots."
Nothing new there.
A critical legal issue is whether the bondholders might be able to get more for their debt if the company were simply liquidated, the proceeds distributed among those with claims.
But administration officials say that the bondholders would receive even less for their investments if GM were liquidated. In that case, the company's other creditors, such as the government, would be paid off first, they note. Yesterday, it was announced that 54 percent of bondholders had approved the deal.
"By the time you finished liquidating GM, there would be nothing for them," an administration official said yesterday....
Maybe that would be for the best if they are going to keep outsourcing and off-shoring.
--more--"
Economic Double-Speak
