G.M. Seeks Bankruptcy and a New Start

General Motors filed for bankruptcy on Monday morning, submitting its reorganization papers to a federal clerk in Lower Manhattan.

G.M. said it had $82.3 billion in assets and $172.8 billion in debts. Its largest creditors were the Wilmington Trust Company, representing a group of bondholders holding $22.8 billion in debts, and affiliates of the United Auto Workers union, representing nearly $20.6 billion in employee obligations.

The filing itself seemed anticlimatic. It was a simple procedure done thousands of times each day across the country, by individuals and business alike. But not usually, as in this case, by companies like G.M. that have woven themselves into the fabric of America culture.

Read it all.


Posted in * Culture-Watch, * Economics, Politics, Credit Markets, Economy, Law & Legal Issues, The Possibility of a Bailout for the U.S. Auto Industry

5 comments on “G.M. Seeks Bankruptcy and a New Start

  1. DonGander says:

    I gues that Obama’s investment of $25000000000 of our tax money was not a good investment, eh?


  2. Jeffersonian says:

    On the contrary, Don, it’s going to pay back handsomely in the form of union-member votes come 2010 and 2012. And isn’t that what’s important?

  3. Jeffersonian says:

    [url=http://apps.detnews.com/apps/blogs/autosblog/index.php?blogid=746]Related.[/url] So much for our independent judiciary. Change!!

    Also related:

    [blockquote]Thus we shall see what fascism has to do to make a system of private ownership and management workable, so far as arrangements involving capital income or reward are concerned. [b]The ruling principle must be that capital and management reward must be kept in continuous and flexible adjustment with economic possibilities, and that legal and institutional arrangements—like loan contracts, bonds, legal concepts of just compensation, due process of law, and confiscation—must not obstruct executive action of government to maintain this adjustment otherwise than by the present devices of bankruptcy, foreclosures, reorganization, and cycles of booms and depressions.[/b] [Lawrence Dennis, The Coming American Fascism (New York: Harper & Bros., 1936 ), Ch. V. “Can We Reorganize the Present System?”][/blockquote]

    Like Truman said, the only thing new under the sun is the history you haven’t learned yet….we’ll just slap a “pragmatism” label on this latest fad.

  4. MikeS says:

    Why Manhattan and not Detroit?

  5. Jeffersonian says:

    [url=http://www.thestreet.com/_yahoo/story/10507842/1/note-to-the-deluded-dont-buy-gm-stock.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA]The Street[/url] has some advice for anyone thinking about GM stock.

    Isn’t everyone thrilled that we pumped $20+ billion into this cadaver, with another $50 billion promised?