GM pays back government loans from US, Canada

U

ubee

New member
GM pays back government loans from US, Canada




Apr 21, 1:44 PM (ET)

By TOM KRISHER















DETROIT (AP) - General Motors Co. has repaid $8.1 billion in loans it got from the U.S. and Canadian governments, a move its CEO says is a sign the automaker is on the road to recovery.

CEO Ed Whitacre announced the repayments Wednesday at GM's Fairfax Assembly Plant in Kansas City, Kan., where he said GM is investing $257 million in that factory and the Detroit-Hamtramck plant. He was to meet with top lawmakers in Washington on Wednesday afternoon.

The White House pointed to GM's repayment of the loan and Chrysler LLC's posting of an operating profit in the first quarter of 2010 as concrete signs that the bailout of the U.S. automakers was working.
 
H

Hoosier

Well-known member
that's a start...it will be interesting to see if they are able to later raise enough money to pay off the government's equity stake.
 
chords

chords

Active member
Juggle the numbers and spin them around.

$52 Billion

$9.5 Billion

$8.1 Billion

$257 Million

60%

12%

A Billion here or there.
 
H

Hoosier

Well-known member
But Harvest, that would be too logical. And it's exactly what the bankruptcy law is set up for. Why do things according to laws when we can just bail them out?
 
H

harvest1121

Well-known member
Well who said you cannot buy a vote? Kinda like the bond holders who are suppose to get paid but they did not. SO was it a Gm bailout or a union?
 
S

samc

New member
The Gov't should not have gotten involved with GM or Chrysler. Nor should be involved in bailing out any business but since the Gov't used my/yours/everyones tax $ for this, if we can get something back it's better then nothing.
 
D

dcsnomo

Moderator
harvest1121 said:
They should of went bankrupt then start over. Then nothing owed.
Click to expand...

Ummm, they did go bankrupt and start over.

The General Motors Chapter 11 reorganization was partially implemented through a section 363 Chapter 11 bankruptcy of automobile manufacturer General Motors and some of its subsidiaries in the United States Bankruptcy Court for the Southern District of New York. The United States government-endorsed bankruptcy plan enabled the NGMCO Inc[1] ("New GM") to purchase the continuing operational assets of the old GM.[2][3][4] Normal operations, including employees compensation, warranties, and other customer service were uninterrupted during the bankruptcy proceedings.[2] Operations outside of the United States were not included in the court filing.[2]
The company received debtor-in-possession financing to complete the process. GM filed for Chapter 11 Bankruptcy protection in the Manhattan New York federal bankruptcy court on June 1, 2009 at approximately 8:00 am EST. June 1, 2009 was the deadline to supply an acceptable viability plan to the U.S. Treasury. The petition is the largest bankruptcy filing of a U.S. industrial company. The filing reported US$82.29 billion in assets and US$172.81 billion in debt.[5][6] [7][8][9]
After the Chapter 11 filing, effective Monday, June 8, 2009, GM was removed from the Dow Jones Industrial Average and replaced by Cisco Systems. From Tuesday 2 June, old GM stock has traded Over the Counter (Pink Sheets/OTCBB), initially under the symbol GMGMQ[10] and currently under the symbol MTLQQ.
On July 10, 2009, a new entity completed the purchase of continuing operations, assets and trademarks of GM as a part of the 'pre-packaged' Chapter 11 reorganization.[11][12] As ranked by total assets, GM's reorganization marks one of the largest corporate Chapter 11 reorganizations in U.S. history. The bankruptcy was the fourth-largest in U.S. history, following Lehman Brothers Holdings Inc., Washington Mutual and WorldCom Inc.[13] Under section 363, a new entity with the backing of the United States Treasury was formed to acquire profitable assets, with the new company planning to issue an initial public offering (IPO) of stock in 2010.[14] The remaining pre-petition creditors claims are paid from the former corporation's assets.[11][14]
 
D

dcsnomo

Moderator
iusmit said:
But Harvest, that would be too logical. And it's exactly what the bankruptcy law is set up for. Why do things according to laws when we can just bail them out?
Click to expand...

No, the bailout and bankruptcy are separate. The government bailed out the auto industry in 2009 with taxpayer funds to keep the companies operating. Operating funds are different than shareholder equity. When GM was unable to make it work, they went bankrupt, the government owns 61% of "New GM". Old GM is gone, done, equity holders lost their equity. This payback is the bailout, it has nothing to do with the bankruptcy.

Before you drill me into my monitor, please be clear that my posts are not an endorsement of the actions by the government, just an attempt to clarify the facts. GM went bankrupt, bye bye, see ya later, equity gone. Government bought 61% of assets to form new GM, it will sell its equity holdings when the market is right to do so.
 
M

mjkaliszak

New member
chords said:
Juggle the numbers and spin them around.

$52 Billion

$9.5 Billion

$8.1 Billion

$257 Million

60%

12%

A Billion here or there.
Click to expand...

Just another numbers game. Between the corps, govt, acctnts, lawyers " We the People " were " sham-boozled ". I don't know about anyone else but I didn't get to vote on this bailout / government confiscation of junk bonds using my hard earned tax dollar.
 
D

dcsnomo

Moderator
mjkaliszak said:
Just another numbers game. Between the corps, govt, acctnts, lawyers " We the People " were " sham-boozled ". I don't know about anyone else but I didn't get to vote on this bailout / government confiscation of junk bonds using my hard earned tax dollar.
Click to expand...

No, you didn't get to vote on it. The reason is that you have a "representative democracy", not a "direct democracy".

"Representative democracy is a form of government founded on the principle of elected individuals representing the people, as opposed to either autocracy or direct democracy.[1]
The representatives form an independent ruling body (for an election period) charged with the responsibility of acting in the people's interest, but not as their proxy representatives; that is, not necessarily always according to their wishes, but with enough authority to exercise swift and resolute initiative in the face of changing circumstances. It is often contrasted with direct democracy, where representatives are absent or are limited in power as proxy representatives."

In our style of government we vote for people, not issues. The elected representatives vote on the issues.
 
uncle_ed

uncle_ed

Active member
creative accounting

How do you have a $4.3 billion dollar loss for the last half of 2009 and then repay $8.1 billion back in 4 months? Seems to me that G.M. probably got another sweet deal from uncle sam with some creative accounting or ???
 
H

harvest1121

Well-known member
When is the last time the government chose who was going to get a stake in the company. Who was going to get what when a company goes bankrupt the bond holders get paid first. So it was not company going bankrupt it was a take over by the government and giving it to the unions which they control. Its just like the Seiu how can they donate 60 million to person running for president but they are in financial trouble.
 
M

mjkaliszak

New member
dcsnomo said:
No, you didn't get to vote on it. The reason is that you have a "representative democracy", not a "direct democracy".

"Representative democracy is a form of government founded on the principle of elected individuals representing the people, as opposed to either autocracy or direct democracy.[1]
The representatives form an independent ruling body (for an election period) charged with the responsibility of acting in the people's interest, but not as their proxy representatives; that is, not necessarily always according to their wishes, but with enough authority to exercise swift and resolute initiative in the face of changing circumstances. It is often contrasted with direct democracy, where representatives are absent or are limited in power as proxy representatives."

In our style of government we vote for people, not issues. The elected representatives vote on the issues.
Click to expand...

Please.................................................................................................................
I was being sarcastic !!!!
You make it sound like our elected representatives really represent the the people that elected them, or act in their best interests ??? They represent themselves & their party . Both of which are corrupt.
 
D

dcsnomo

Moderator
mjkaliszak said:
Please.................................................................................................................
I was being sarcastic !!!!
You make it sound like our elected representatives really represent the the people that elected them, or act in their best interests ??? They represent themselves & their party . Both of which are corrupt.
Click to expand...

Sorry I missed the sarcasm!

No I did not in any way, shape, or form indicate that I think our representatives act in our best interests...uh, uh, no way. I totally agree with you!
 
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