Bankruptcy

GM Loses 4.3 Billion?After Bankruptcy

By mcbride

GM lost 4.3 billion in the 6 months after it emerged from Chapter 11 reorganization, which it undertook to fix its debt problems.  One can only respond to the news of GM?s post bankruptcy losses with: ?that?s never good.?  One ?automotive turn around expert? responded to the news ? by blaming the ?bankruptcy stigma? ? hummm, I suppose that would be the six months after bankruptcy stigma.  ??Last year is last year. [yes, technically it was 09, but these loss figures were from July through the end of December, which is about 3 months ago] GM still needs to clean up its own house and follow through with everything it says it’s going to do,? he said. ?Once the company turns a profit and goes public, the bankruptcy stigma will eventually go away.?? The company also said that it looks forward to its IPO?not sure how he kept from laughing.  ?GM, of which the U.S. government owns a 61% stake, said that going public would allow the company to ramp up investments in vehicle designs, attract the best people and gain access to the capital markets.?  Crazy prediction: a second chapter 11 filing, this time with more serious cost cutting internally and existing equity getting very little, if anything.

Michael

Add: here is the link: http://www.marketwatch.com/story/gm-loses-43-billion-after-bankruptcy-2010-04-07?reflink=MW_news_stmp

Full post as published by Texas Lawyer Blog on April 08, 2010 (boomark / email).