It's called socialism. This is insane. Like who in their right mind is going to loan money to this company from now on. GM from now on will be known as Government Motors.

No its called Bankruptcy, thats what wiped out share holders.

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Loving my BMW

No this is much different. The union is put ahead of the bondholders. Borrowing money is a companies lifeblood and this move will have repercussions. There's a difference between stocks and bonds.

Yes and this Thread is:

What will happen to my GM stock with bankruptcy?

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Loving my BMW

Nice skirting of the issue but at least you concede my point.

More importantly, why is the Administration which proclaims "I don't want to run a car company" releasing their share of ownership in bond sales to existing bond holders so they can make some return on investment? Instead the government is holding ownership

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An unwavering defender of those I see worth protecting.

"promote the general welfare, not provide the general welfare"

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

You dont have to use "toilet paper" that day......just watch out for "paper cuts!"

Fletch

It's called Absolute Priority.

GM has a $20B-$30B (I've seen conflicting numbers) secured debt to VEBA which was restructured as a 17.5% stake in the new GM. GM started holding back funds to the UAW pension plan when the plan was overfunded because of cash shortages, amassing a debt of $51B. That's why the union gets a piece of the pie.

The demise of the UAW will take place if the new GM fails.

Here's a well thought out article:
The Failure of General Motors Is a Failure of Government Policy -- Seeking Alpha

I will not be surprised if they fail again.