GM Inside News Forum - View Single Post - Obama Transition Said to Consider a ‘Prepack’ Auto Bankruptcy

SierraGS · 11-21-2008, 02:47 PM

Do not see the benefit of a "Prepack" if it going to take 12 months, by then the Big three will start reaping the cost savings agreed to a year ago.

Besides this GM going under and it's stock going to zero could be the straw that breaks the markets back - many investors are getting tired of these large companies going under over the weekend (like Wamu when it "had a buyer" on Friday).

Yes, stocks are risky but when there is a viable alternative it should be looked at - for what little the stock it worth the government should just buy up all outstanding common (much of it is owned by state and gov't pension plans anyway) - I can see the "Did you lose money on GM stock?" lawsuit ad on TV now.

The only "Prepack" I would agree with is one with Chrysler since there are no common stockholders to sue the government over losses later and since it is a private company most of the nasty details sill not need to be disclosed. This will also greatly reduce the pension liability going to PBGC and Healthcare to Medicare. Additionally it reduces the number of creditors that need to be dealt with lowering costs and delays.

11-21-2008, 02:47 PM	#19 (permalink)
SierraGS 4.6 Liter Northstar V8 Join Date: Feb 2007 Location: SoCal Drives: '04 Sierra '02 Regal GS "05 PT Cruiser Posts: 1,543	Re: Obama Transition Said to Consider a ‘Prepack’ Auto Bankruptcy Do not see the benefit of a "Prepack" if it going to take 12 months, by then the Big three will start reaping the cost savings agreed to a year ago. Besides this GM going under and it's stock going to zero could be the straw that breaks the markets back - many investors are getting tired of these large companies going under over the weekend (like Wamu when it "had a buyer" on Friday). Yes, stocks are risky but when there is a viable alternative it should be looked at - for what little the stock it worth the government should just buy up all outstanding common (much of it is owned by state and gov't pension plans anyway) - I can see the "Did you lose money on GM stock?" lawsuit ad on TV now. The only "Prepack" I would agree with is one with Chrysler since there are no common stockholders to sue the government over losses later and since it is a private company most of the nasty details sill not need to be disclosed. This will also greatly reduce the pension liability going to PBGC and Healthcare to Medicare. Additionally it reduces the number of creditors that need to be dealt with lowering costs and delays.