Bankruptcy Defined!!!!!!!!!!

[FutureCamaro Owner]

I think a lot of people in here should definitely get a clear understanding of what the term ‘bankruptcy’ means in business perspective. If GM goes bankrupt, it does NOT mean that the company will disappear, it means the company will restructure itself to come out in a better position to compete against its rivals (in theory at least). This means that the company will STILL be around. Read that last part again, STILL BE AROUND!!!! I believe a lot of you are uninformed and should differentiate between a personal bankruptcy and a corporate bankruptcy. Those are completely DIFFERENT. And even if the company disappears, the government has stepped in to honor those warranties.

(Before reading this part, keep in mind that I’m not even north American, but I’ve traveled and lived in enough places around the world to make my own opinion. You may no believe what I say, and it is your right)
I’m sorry to say this, and but to all of you who keep buying Japanese products, keep supporting a country that doesn’t buy American cars. Keep supporting a country that buys peanuts. For every Japanese car u keep buying, your helping a Japanese job stay over there... And I know some of you will say that is not true, go the Japanese version of Toyota’s website, and check one of their visions/goals, and it clearly states that one of their main goals is for the “betterment of the Japanese society.”

[PQ]

Sure won't help the 213 shares of GM I bought last month.

500.00 in case you weren't paying attention.

And welcome to the site.

[tjbusa]

I've always supported the big 3, GM the most.

[manimsoblack]

Originally Posted by irpq11

Sure won't help the 213 shares of GM I bought last month.

500.00 in case you weren't paying attention.

And welcome to the site.

I'm planning on by $1000 the day bankruptcy is declared

[PQ]

Originally Posted by manimsoblack

I'm planning on by $1000 the day bankruptcy is declared

I maybe should have waited. :(

Will the company even be public after that? May be a stupid question but with this Gov., you never know.

[Wingnut]

If bankruptcy is delcared current stock will go to %0 with little or no chance of ever being worth a penny. I just sold all my GM stock at a loss, but it's better than $0. When they come back, they'll list as a different stock ticker and never revalue the old stock.

[PQ]

What would be the starting price per share?

How do they determine that?

Iroczlover; did you ever buy yours?

[Number 3]

Just to be clear, what you are describing is Chapter 11.

Chapter 7 is liquidating all the assets and the company does cease to exist.

And to your final point, the transplants are here because they can make more money by doing it. If the Big 3 were to go under, some people think those jobs would just be replaced by Japanese or German or Korean plants. They won't. More likely case is there would no longer be a need for them here. Case in point, we buy a huge number of Plasma and LCD TVs here in America. How many plants have opened up in the U.S. to support that? Zero that I know of.

[MrIcky]

Here's the simple form version of what generally happens in a Ch 11.

*a Judge or Panel is chosen.
*an independant auditor determines the minimum daily expenses/income required for the bare minimum business to continue while the bankruptcy is going on.
*if the judge agrees with the auditors assessment and that much cash flow exists, then EVERYTHING (assets, income, property) becomes 'owned' by the court and the court then doles out expenses like allowance to keep things rolling while they wait for the next step.
*The auditors then advise the judge on the company's 'means' and 'best efforts' which is how they determine what they can pay to creditors.
*If there is general agreement with all the majorly effected parties then the 11 is basically drawn up with the restructuring plan.
*Then you implement it with the court basically being the go-between and court appointed auditors confirming you do everything.

Many things can go wrong, they could be forced into a 13, every single project they have will be thrown into scrutiny (and probably stopped), the judge and to a lesser extent creditors and auditors will be able to stop certain products. Some companies have done well with a restructuring but it has destroyed others. I'd fight it as long as I can if I were GM too.

It's not like you walk in, check your bad prior decisions at the door and walk back out. You basically make the court your CFO with veto authority on everything you do for 3-7 years.

[The_Blur]

Most people are also unaware that market research suggests that 78% of buyers would be hesitant to buy from a brand that is bankrupt. If a car enthusiast board who knows a lot about GM is panicked about bankruptcy, then imagine how many other buyers won't continue to support the brand. Article is by Consumer Reports.

[dbotsfordtat]

Originally Posted by irpq11

Sure won't help the 213 shares of GM I bought last month.

500.00 in case you weren't paying attention.

And welcome to the site.

I tried to warn you. Just kidding, sorry for your loss.

[dbotsfordtat]

They're talking about a surgical bankruptcy, I'm assuming that means special treatment. Consumers generally have short attention spans, including myself, IMO GM will be a much stronger company after bankruptcy even with a short term drop in sales. As far as stocks are concerned, I'm certainly no expert but I'll be looking for an initial public offering after bankruptcy for common stock. Even with a new and improved GM though, don't forget we're in a very bad recession, so car sales may be years away from a recovery.

[Rothnak]

Originally Posted by dbotsfordtat

They're talking about a surgical bankruptcy, I'm assuming that means special treatment. Consumers generally have short attention spans, including myself, IMO GM will be a much stronger company after bankruptcy even with a short term drop in sales. As far as stocks are concerned, I'm certainly no expert but I'll be looking for an initial public offering after bankruptcy for common stock. Even with a new and improved GM though, don't forget we're in a very bad recession, so car sales may be years away from a recovery.

I like what this guy said.

[FutureCamaro Owner]

I agree with most of you, the only reason I posted this (even after other members have consistently repeated what I said), still believe that bankruptcy= gone forever. I live here in north america, and I'll attempt to convince as many people as possible to buy from the big 3. Heck, I just convinced my buddy to get a brand new chrysler 300 ( he was going for an acura...). Anyways, that's what I believe in, but everyone is entitled to their opinions. Cheers to everyone and enjoy the summer everyone