GM Defaults; Chrysler to be LIQUIDATED next weekSubmitted by SteveMT on Wed, 04/22/2009 - 13:24
GM DEFAULTS (GM)
Joe Weisenthal|Apr. 22, 2009, 12:41 PM
But now it's official. The company's CFO says the firm will not make its June 1, $1 billion debt payment reports WSJ.
GM Plans to Skip $1 Billion Debt Payment
* APRIL 22, 2009, 1:11 P.M. ET
General Motors Corp. Chief Financial Officer Ray Young said the company doesn't plan on making a $1 billion debt payment due June 1 and is relying on either a successful debt-for-equity exchange or court protection to dramatically lower its outstanding debt.
Mr. Young, speaking to reporters on the sidelines of a Chinese auto industry summit near Detroit, said the company will launch a debt-for-equity exchange in coming days aimed at greatly reducing its $28 billion unsecured debt load. He said GM needs to move quickly to commence the offer in time to wrap it up by June 1, the federal government deadline it faces for revamping the company.
Chrysler Liquidation Could Start Next Week
Apr. 21, 2009, 7:51 AM
Just a few months ago, the prospect of the government letting a major car company go into liquidation seemed impossible. Surely, in an effort to protect the UAW, the big three would be propped up as zombie autos in some way or another.
But it looks like the weakest of them, Chrysler, may be kaput. Not restructured, not forced into some kind of government-sponsored pre-packaged bankruptcy, but actually scrapped for parts in an auction.