Quote:
Originally Posted by Ming
For starters, don't fret that GM will collapse this weekend, or next month, or next year. Only $3.6 billion of the $15.5 billion of red ink was in hard cash, and when companies fail, it's usually when the hard cash runs out and they can't pay their bills or employees. GM still has $21 billion of cash on hand and access to a credit line for $5 billion more if needed.
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I have a question.
How "safe" is that $5 billion in potential credit that we keep hearing about? Is it already granted and greenlighted regardless of the situation GM might be in in the future? Or is it simply available now and that's is?
'Cause if I were that potential creditor, I could be willing to lend $5B to GM right now but I might definitely want to reconsider by the time GM is down to their last dollars and actually needs to tap into my $5B... the company is likely by then to be in a much worse shape.