Here we go again…
Now GM will take the bankruptcy trail. The new CEO (Chief Executive Obama) will be speaking Monday about the restructuring after the filing. This will be similar to the Chrysler debacle.
You have two things that happen in bankruptcy law. All contracts are dissolved, then during the restructuring, bondholders are given the largest percentage of the debt owed.
This is what happened to Chrysler. All contracts were dissolved, except for the UAW. Then the largest percentage of debt was given to the UAW. This is what will happen to GM. All contracts will be dissolved, except for the UAW. Then the largest percentage of the debt will go to the government.
Obama strong armed the bondholders like a Chicago thug. He told them they would be slung through the mud with the Presidential Press Corp. The bondholders caved.
- So far Obama has:
- Fired the CEO of GM.
- Mandated Chrysler’s ad campaign.
- Forced Chrysler to close dealerships.
Obama says he doesn’t want to be in the car business. He looks like he has his hands all in it.
