Not looking to be pessimistic, BUT... GM Bankruptcy thoughts? - Page 6 - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

Ranger 75 · 05-12-2009, 03:57 PM

I just saw on CNN that GMs executives are dumping stock!

austinpowersIII · 05-12-2009, 03:59 PM

Quote:

Originally Posted by domano 68

I think a better understanding of this process is needed on this forum.

+100

Bowtie Girl · 05-12-2009, 04:09 PM

They sold a ton of it yesterday! I saw it on TV last night. glad we don't own any.........people are going to lose their butts! I am afraid we are all going to be waiting a little bit longer for our cars once they file chapter 11.

ssump29 · 05-12-2009, 04:32 PM

Quote:

Originally Posted by hdslew43

GM Oshawa will shut down as soon as Bankruptcy is filed, because of suppliers. All Chrysler assembly plants are still down. This could be a long wait. Ordered IOM 2 SS on 5-04-09.

Ok people there is a difference between Chapter 11 and Chapter 7 bankrupty. Operations do not stop unless it is required or done by GM themselves. In Chapter 11 you are protected from your debt holders while you restructure and get your plan together to come out. Chapter 7 is when you completely shut operations down and liquidate all assests in as we say in the accounting world (Fire Sale). Also as part on the Chapter 11 the government has agreed to loan GM money, that was the reason GM was given more time to either come up with a plan or file for bankrupty. One condition of them going into chapter 11 is that the government would release more funds to them. What does that mean you ask? That means GM will close some operations but not all and will use the money to put towards the operations that are creating revenue and profits which the production of the Camaro is one of them. The government has agreed the foot the bill for the suppliers of GM so that will not stop them from getting the raw materials that they need.

Its as simple as that. I do this for a living and more then likely this is how GM will operate while re-organizing the company.

Hylton · 05-12-2009, 04:36 PM

Quote:

Originally Posted by ssump29

The government has agreed the foot the bill for the suppliers of GM so that will not stop them from getting the raw materials that they need.

Not exactly. The government has only agreed to fund certain suppliers. The small guys are not covered and they can hold up the supply of a car just as easily as the big guys.

ssump29 · 05-12-2009, 04:37 PM

Also let me add the conditions to getting the money, the government will also put a time table on when GM is to emerge from Chapter 11 and if they aren't out by the deadline they will be responible for paying all the money they owe the government as of that date over the deadline.

ssump29 · 05-12-2009, 04:41 PM

Quote:

Originally Posted by Hylton

Not exactly. The government has only agreed to fund certain suppliers. The small guys are not covered and they can hold up the supply of a car just as easily as the big guys.

I know that, but thats also why funds will be given to GM also to use as needed. The people the government are going to cover are all the companies that GM currently have a debt with before going into bankrupty. It has already been said plently of times. Whatever company that gets into business with GM after they are in chapter 11 does so at their own risk and will not be covered by the government.

z06invb · 05-12-2009, 06:12 PM

Well the stock is down to 1.15 a share today. Executives are bailing out. I am holding on to my shares left now. Might as well ride it on down and take the cap loss on it. I had money in Chrysler bonds and believe me since I cant get political here lets just say I will never again invest in any US car company. We were painted as speculators and in reality many were just plain old folks investing in their 401k's not the demons we were made out to be. Even if GM avoids bankruptcy they plan a 100 to 1 reverse split on stocks. Basically making our shares all but worthless. The UAW will have to convert its shares into cash and that stock is going to fall like a rock. There is zero investor confidence in the industry.

I wish people here are correct and Oshawa stays open but I cant see it happening short term. Long term who knows? None of this is good.

bob2the2nd · 05-12-2009, 07:47 PM

Quote:

Originally Posted by z06invb

Well the stock is down to 1.15 a share today. Executives are bailing out. I am holding on to my shares left now. Might as well ride it on down and take the cap loss on it. I had money in Chrysler bonds and believe me since I cant get political here lets just say I will never again invest in any US car company. We were painted as speculators and in reality many were just plain old folks investing in their 401k's not the demons we were made out to be. Even if GM avoids bankruptcy they plan a 100 to 1 reverse split on stocks. Basically making our shares all but worthless. The UAW will have to convert its shares into cash and that stock is going to fall like a rock. There is zero investor confidence in the industry.

I wish people here are correct and Oshawa stays open but I cant see it happening short term. Long term who knows? None of this is good.

you didnt have money in ford did you? because ford is doing VERY well (except today when they released 300 million shares). it was up well over triple its amount from march. now its only 2.5x what it was in march.

FiLTHy PHiL SS/RS · 05-13-2009, 11:01 AM

Eeeek..... My Stocks

Hylton · 05-13-2009, 12:01 PM

Quote:

Originally Posted by ssump29

I know that, but thats also why funds will be given to GM also to use as needed. The people the government are going to cover are all the companies that GM currently have a debt with before going into bankrupty.

Not true. Only 5 billion has been set aside for Tier 1 suppliers even though they are owed 17 billion. You can easily see how it doesn't add up. Secondly, Tier 2 and 3 suppliers are not included in the govts. safety net.

http://www.cnbc.com/id/15840232?video=1122035525&play=1

05-13-2009, 11:01 AM	#80
FiLTHy PHiL SS/RS Me likes Blue Drives: 1968 Camaro RS, 2010 SS/RS IBM Join Date: May 2009 Location: Manch Vegas NH Posts: 738 View My Garage	Eeeek..... My Stocks __________________ Ordered 4/25/09 Born on 6/11/09 Delivered 6/26 Picked up 6/27 2SS/RS IBM, Body Matched Ground Effects, Sunroof, Silver riser stripes, ADM CAI, Noweeds exhaust, Catch Can (Blue). Don't care what color. as long as it's Imperial Blue Metalic! Own 68 Camaro RS 327 LeMans Blue, 2002 Vet Electron Blue

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05-12-2009, 03:57 PM	#71
Ranger 75 Drives: 2010 Camaro 2SS IBM Join Date: Apr 2009 Location: Florida Posts: 286	I just saw on CNN that GMs executives are dumping stock!

05-12-2009, 04:09 PM	#73
Bowtie Girl Drives: Black 2LT RS Auto 20" Polished Join Date: May 2009 Location: Southern Cali Posts: 138	They sold a ton of it yesterday! I saw it on TV last night. glad we don't own any.........people are going to lose their butts! I am afraid we are all going to be waiting a little bit longer for our cars once they file chapter 11.

05-12-2009, 04:37 PM	#76
ssump29 LOL at most people here. Drives: 2005 GTO,2006 M6, 2007 300 Touring Join Date: May 2009 Location: MI Posts: 1,331 View My Garage	Also let me add the conditions to getting the money, the government will also put a time table on when GM is to emerge from Chapter 11 and if they aren't out by the deadline they will be responible for paying all the money they owe the government as of that date over the deadline.

05-12-2009, 06:12 PM	#78
z06invb Drives: 2001 Chevy Corvette Z06 Join Date: Mar 2009 Location: Virginia Posts: 135	Well the stock is down to 1.15 a share today. Executives are bailing out. I am holding on to my shares left now. Might as well ride it on down and take the cap loss on it. I had money in Chrysler bonds and believe me since I cant get political here lets just say I will never again invest in any US car company. We were painted as speculators and in reality many were just plain old folks investing in their 401k's not the demons we were made out to be. Even if GM avoids bankruptcy they plan a 100 to 1 reverse split on stocks. Basically making our shares all but worthless. The UAW will have to convert its shares into cash and that stock is going to fall like a rock. There is zero investor confidence in the industry. I wish people here are correct and Oshawa stays open but I cant see it happening short term. Long term who knows? None of this is good.