02-22-2009, 02:02 PM | #1 |
Drives: RS/SS Vector Tuned Kooks Roto Join Date: Dec 2008
Location: Passing you...
Posts: 87
|
Good News.... Bad News..
Senate Considering GM Debt Swap Support
Senate members are considering throwing the hammer down on GM debt holders. One of the largest tasks at hand for General Motors and their restructuring is reducing their near $27 Billion in debt. The federal government is requiring GM to attempt to get their bond holders to do a debt-for-equity swap to reduce their debt to about $.30 on the dollar. On March 31 General Motors has to report to the Department of Treasury with a resolution to reducing their debt and thus far cooperation with the debt holders has been shaky. GMI has been told that there is consideration among the Senate of a bill that would put a squeeze on GM bond holders. The majority of GM bonds is held by the largest banks in the U.S. One of which is JP Morgan. In an effort to nearly force the debt holders to agree to a debt-equity swap, the Senate is considering legislation that would require the bond holders to agree to swap or they would potentially lose their TARP funds. We're told part of the deal would also automatically reject said bond holders from receiving any further TARP funding if they were to deny swapping GM debt. At this point this consideration is on the part of some of the Senate's "pro-GM" lawmakers and appears to be a grassroots effort. It's largely unclear is such legislation could pass in the Senate and whether the GOP would be supportive of it. It's also not entirely clear if President Obama would be willing to sign legislation forcing the banks to comply. If GM fails to reduce their debt in compliance with the Department of Treasury's demands, they would likely lose their U.S. loans. If that were to happen, GM would be forced to file for Chapter 11 bankruptcy protection with little government support. Of which, the Administration no longer wishes to see due to the impact on jobs, however would the Administration support putting a gun to GM's bond holders? We shall see if anything comes of this. Stay tuned, something new on GM comes out almost every hour. GMI has not been told of which Senators are considering this legislation. http://www.gminsidenews.com/forums/f...support-75750/ |
02-22-2009, 03:05 PM | #2 |
Gunning for Sixth
Drives: '03 ZR2 Blazer Join Date: Sep 2008
Location: Woodhaven, Michigan
Posts: 9,358
|
27B -> 810M...
Do it banks. Do eet.. Seriously, if they can eat that much debt there's hope for GM yet. |
02-22-2009, 03:33 PM | #3 |
2010 SIM Beige RS 6M
Drives: SIM RS 6M 66 Corvair Silverado LTZ Join Date: Oct 2008
Location: Kamloops,British Columbia
Posts: 4,677
|
sounds like a good plan......all the banks did with the TARP money was leave in the vault and pay bonuses.
__________________
CAMARO.. 2010 The Heart Beat is back in CHEVROLET
Now let's put it back in America |
02-22-2009, 03:46 PM | #4 | |
WAITING!
|
Now the government is running all of the biggest businesses. Just imagine how much longer until they raise taxes to 90% but give a huge tax discount to everyone that is willing to accept government control.
__________________
Quote:
|
|
02-22-2009, 06:05 PM | #5 |
|
There must have been an asterisk at the bottom of their agreement to receive TARP funds that said other condition/rules to apply, even those we haven't thought of yet.
The government is acting like a dirty loan shark.
__________________
2010 1SS RS, LS3, SIM/Black, painted rally stripes, AAC sidemarkers, Sunroof, B.A. sound sys; 20x9.5 & 20x11 SV1-C5's; MGW short shifter; Hotchkis Track Pack; Corsa catback; Kooks 1 7/8"; ADM Street; Magnacharger TVS2300 - 548rwhp/512rwtq
1100- 2/18/09; 3800- 6/15/09 VIN#18308; Delivered 6/29/09!!!!! 2014 CTS-V Sedan, Black/Black, Auto, Recaros, Ultra-view, Red Brembos. Stock |
|
|
Thread Tools | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Bad news for future high-powered Camaros | UCF w00t | 5th Gen Camaro SS LS LT General Discussions | 79 | 01-28-2009 11:27 AM |
Finally some good news | TomServo | 5th Gen Camaro SS LS LT General Discussions | 5 | 12-10-2008 12:25 PM |
Hey Tag! Have you been trained to draw blood yet? | Silverado | Off-topic Discussions | 16 | 12-30-2007 09:00 PM |
Edmunds.com review of Holden Commodore... good info. | LSxcellent | General Automotive + Other Cars Discussion | 6 | 07-23-2007 06:49 PM |
Good News Boys and Girls | Freedom07 | 5th Gen Camaro SS LS LT General Discussions | 45 | 01-31-2007 10:08 AM |