Bondholders Argue Over GM Assest Sale

['Vette Dude]

Dissenting bondholders argue against GM asset sale

NEW YORK, July 2 (Reuters) - A group of dissenting bondholders told a U.S. bankruptcy judge on Thursday that General Motors Corp's (GMGMQ.PK) proposed asset sale to the government should be blocked because it is not "a genuine sale."

Calling GM's sale the first attempt at a "Chapter 11 nationalization," Michael Richman, a Patton Boggs bankruptcy attorney representing the group of dissenting GM bondholders, said the U.S. government had been "overbearing" in its rescue of the automaker and was circumventing the law.

GM was in U.S. bankruptcy court in Manhattan on Thursday to seek approval from Judge Robert Gerber for a proposed sale of its best assets to a "New GM" funded by the U.S. government.

Over the course of the three-day hearing, the company's lawyers, CEO Fritz Henderson, and a senior member of the Obama administration's autos task force have argued that the sale is GM's only option for survival.

If the deal is approved, New GM plans to be a company that would have the best parts of the old company, a less-expensive workforce and much less debt.

http://www.reuters.com/article/gover...24529220090702

[Drive_Fast]

i agree that this is asham and a front to nationalize the economy. They have a vailid point. the finicial sector was the first, now they have pay controls and other issues to deal with, now its autos and pay control. next its health care.... then its..... let have the free market economy do its job. gm will live on in some form just like how amc lives on thru chrysler... granted gm did not need 8 or more brands when 1 or two will do... i say chevy and buick since buick is truly international and outsells caddy internationally as well....

[chevyman1973]

i love hearing people complain about the govt moving around the law, but that is what is done everyday in court rooms around this country! As for this sale if its in the law and they say it can be done then whats the problem! Remember these laws were on the books long before GM filled chapter 11!

Dont you people want GM to be around anymore? Dont you understand that the govt is why GM is in this spot! They made it easy for the other auto companies except the big 3 to make it in the us!

[vu2vu]

GM's failure was of their own doing. The previous management just didn't know how to run a profitable company.

Here is some food for thought. In every other industry we pay a premium for "Made in America" because we know it was carefully engineered and built to last. How come this is not the case for Automobiles?

Originally Posted by chevyman1973

Dont you people want GM to be around anymore? Dont you understand that the govt is why GM is in this spot! They made it easy for the other auto companies except the big 3 to make it in the us!

[robsaw]

Again, as per Chrysler, the only real question is whether the price paid for the good GM assets is fair. Who ends up owning New GM is really of no consequence legally so long as they have the financial resources to complete the sale. So far, only the gov't is putting the $B necessary on the table.

[A Bum In A Bus]

Originally Posted by Drive_Fast

i agree that this is asham and a front to nationalize the economy. They have a vailid point. the finicial sector was the first, now they have pay controls and other issues to deal with, now its autos and pay control. next its health care.... then its..... let have the free market economy do its job. gm will live on in some form just like how amc lives on thru chrysler... granted gm did not need 8 or more brands when 1 or two will do... i say chevy and buick since buick is truly international and outsells caddy internationally as well....

Free market economy = unfair advantages for every country in the world when trading with the United States. If someone doesn't put the brakes on this SOB called "free market economy" none of us will have a future. When the jerk-offs in DC finally figure it out, this country will be nothing more than a third world country with a lots of Nuclear weapons. Hey look out the window kids, we're almost there, take a look at your future.

[Byron]

Originally Posted by chevyman1973

i love hearing people complain about the govt moving around the law, but that is what is done everyday in court rooms around this country! As for this sale if its in the law and they say it can be done then whats the problem! Remember these laws were on the books long before GM filled chapter 11!

Dont you people want GM to be around anymore? Dont you understand that the govt is why GM is in this spot! They made it easy for the other auto companies except the big 3 to make it in the us!

Brian! Your a smart man , I just wish you were a Congress man or Senator . The Idiots we have there now have no idea what they have done to American Business. They were too busy listening to all this global economy crap. Thank You>

[Rocket 88]

Originally Posted by chevyman1973

Dont you people want GM to be around anymore? Dont you understand that the govt is why GM is in this spot! They made it easy for the other auto companies except the big 3 to make it in the us!

Sure, lets just use the Government as a scapegoat. GM drove themselves into the dumper. Sure, the foreign companies had some advantages but GM had tons of advantages as well. You'd think the greatest economies of scale, an increadible consumer base and decades of experience GM would have been able to remain competetive with folks with a slightly cheaper labor cost.

But its always easier to blame someone else then to look in the mirror...

[Rocket 88]

Originally Posted by Byron

Brian! Your a smart man , I just wish you were a Congress man or Senator . The Idiots we have there now have no idea what they have done to American Business. They were too busy listening to all this global economy crap. Thank You>

Its more like what the Businesses have done to the global economy.

[PeteM143]

Originally Posted by Drive_Fast

i agree that this is asham and a front to nationalize the economy. They have a vailid point. the finicial sector was the first, now they have pay controls and other issues to deal with, now its autos and pay control. next its health care.... then its..... let have the free market economy do its job. gm will live on in some form just like how amc lives on thru chrysler... granted gm did not need 8 or more brands when 1 or two will do... i say chevy and buick since buick is truly international and outsells caddy internationally as well....

Maybe you should really understand the bigger problem. So many people in this country have been convinced that completely unfettered markets are the only way to have capitalism. From the end of the 1990's until now, that's pretty much what we had. Did you pay attention to what happened?? Humans, by nature are greedy. IF you leave no rules, then folks will take advantage. Wall Street killed the financial business by always trying to push off every riskier deals to the next guy. Guess what....it collapsed.

Now, if you advocate letting capitialistic darwinism do it's thing, then be prepared for 30% unemployment. That's what occurred in 1929...

GM was a victim of the economy and it's own previous success. The Government did the right thing, in my opinion. It saved our economic base and didn't let the finance markets melt down.

The people who consistently make money off the backs of others are the ones who consistently advocate a bunch of deregulation and convince people who are intellectually lazy that it's in their interest to let super rich steal from them, all in the interest of 'freedom'. I see people work against their own interests all because someone convinced them that limits are Un-American.

The US Government will get out of GM as soon as the BK is done and they can pull off an IPO. They don't want to run private businesses. They don't want to put their noses in you healthcare either. They are involved because they have to be. Our wonderful industrialists have forced them to bail 'em out.

[Drive_Fast]

Originally Posted by chevyman1973

i love hearing people complain about the govt moving around the law, but that is what is done everyday in court rooms around this country! As for this sale if its in the law and they say it can be done then whats the problem! Remember these laws were on the books long before GM filled chapter 11!

Dont you people want GM to be around anymore? Dont you understand that the govt is why GM is in this spot! They made it easy for the other auto companies except the big 3 to make it in the us!

thats the problem, the courts can "read" the law to be anything they want... next they can tell us that our right to bear arms means that we have a right to have our right and left "Arms" of our body.... or that we can have a "Bears" arm from the animal. I think we need to rewrite the constitution and make it very specific so none of this garbage continues and get rid of bankruptcy code all of it... rest of the world does not have a bankruptcy code like the usa does.... much tougher...

[Drive_Fast]

Originally Posted by A Bum In A Bus

Free market economy = unfair advantages for every country in the world when trading with the United States. If someone doesn't put the brakes on this SOB called "free market economy" none of us will have a future. When the jerk-offs in DC finally figure it out, this country will be nothing more than a third world country with a lots of Nuclear weapons. Hey look out the window kids, we're almost there, take a look at your future.

free market system is were its at.... if all other nations used a true free market economy all would be fine... why should gm have to worry about cafe standards, safety standards, and all the market should push that not the government....

[Rocket 88]

Originally Posted by Drive_Fast

free market system is were its at.... if all other nations used a true free market economy all would be fine... why should gm have to worry about cafe standards, safety standards, and all the market should push that not the government....

Because the free market economy theory is crap. The US government can barely get GM to care about fuel economy, safety or environmental responsible manufacturing. You think a bunch of consumer will? These are the same consumer who purchase crapwagons from Korea in the 1980's because they were cheap. You really believe people trying to finanically survive (and regardless of your perception most of the country is poor) are going to use thier buying power to push the auto industry?

If you left the industry to their own devices we'd still be using leaded gas and have major environmental disasters on our hand. Not to mention probably no seatbelts or turn signals.

You might as well still believe in Laissez Faire and the tooth fairy.

[blue3231]

Originally Posted by Rocket 88

You might as well still believe in Laissez Faire and the tooth fairy.

Wait, there's no tooth fairy?

[tgagneguam]

Originally Posted by chevyman1973

i love hearing people complain about the govt moving around the law, but that is what is done everyday in court rooms around this country! As for this sale if its in the law and they say it can be done then whats the problem! Remember these laws were on the books long before GM filled chapter 11!

Dont you people want GM to be around anymore? Dont you understand that the govt is why GM is in this spot! They made it easy for the other auto companies except the big 3 to make it in the us!

This post unfortunately reflects a new reality in America, one that I think is the start of a slide toward mediocrity.

Yes, GM failed because of everyone else. It had nothing to do with management or the UAW that represented the workers.

Little Johnny isn't doing well in school because the teacher isn't good enough. It has nothing to do with the parents not providing a home in which education is emphasized. Or better yet it has nothing to do with the fact that Johnny doesn't study.

Yup, Americans are fat because of McDonald's or their parents' genes. It has absolutely nothing to do with people making poor food choices and leading sedentary lifestyles.

Financial institutions failed because borrowers had guns to the heads of Bank of America and Citigroup, forcing them to lend to credit unworthy people. And alternatively, borrowers were forced to buy larger homes that they couldn't afford.

When Americans stop externalizing responsibility, you will see lots more good start happening in America.