Quote:
Originally Posted by Augie1978
I would think that the secured creditors who have a lien on GMs car inventory would not lose out on that collateral after a BK, so dont see how holding cars until after the BK would be an advantage.
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When there is a commitment on product, it most likely will not be included in the total inventory before bankruptcy, but it's revenue can flow in if it is invoiced after bankruptcy. If it is marked as sold material, then it's revenue isn't earmarked with liens. If it was, then that merchandise would have to be moved and paid for before the bankruptcy. There are many ways around this and based on this theory, it is evident that contrary to what most want to think on here, GM is actually making the effort, every effort TO get us our cars. That is why suppliers have been prepaid, Oshawa won't close, and production is focused on the pre solds right now. Anyone can disagree if they want, but let's not waste the energy until more comes out in the next couple of weeks. Most sold orders could be built already and we don't know it.