This kind of leadership doesn’t come along often. Read more »
You can’t take the pressure at your job, you’re tired of getting kicked in the nuts and blamed for everything’s that’s wrong in the world. You need some lovin’ and can’t seem to get it anywhere. You”re completely burned out. Where to turn? If you’re Fritz Henderson, you go crawling back from whence you came. Only this time, you play hard ball, and you do it on your terms. That’s how the former GM CEO, who resigned in December after eight months on the job, is doing it. He’s back, baby, but now as a “consultant” for GM, in a gig that pays about $59,000 per month, for 20 hours- or about $3000 an hour.
Of course there is no way they would try to abuse the 363 sale process again since that trick is kind of old.
General Motors Corp’s plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.
The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.
WOOPS. Yes, sure enough, here it is again. Of course, part of the problem here is that much of GM’s debt is spread out down to even retail levels. Craming down Grandma UAW’s GM bonds is, ironically, going to be much less easy than screwing over a few hedge funds, both public relations wise and as a practical matter.
GM bankruptcy plan eyes quick sale to gov’t [Reuters]
Or it would seem from the looks of the CNN piece:
General Motors is preparing to announce that the Pontiac car brand — once marketed as GM’s “Excitement division” — will be killed off, according to a source familiar with the decision.
These are, of course, the death cries of the company, which had hitherto been muffled with yards of duct tape bearing Management and UAW fingerprints. This is the end. Can we please stop sending money now?
Pontiac: End of the road [CNN.com]
Have we really reached the point of unadulterated fantasy such that anyone still thinks GM is going to avoid not just bankruptcy but an ugly and protracted bankruptcy? Seriously, how much longer is the investing public going to tolerate C-Level executives who are either so out-to-lunch that they believe their own prattle, or so spun that nothing that escapes their lips has a signal-to-noise ratio that exceeds that of the Pioneer 10 spacecraft?
General Motors Corp Chief Executive Fritz Henderson said on Friday the automaker was readying detailed plans for a bankruptcy filing that now appears more likely even as it races to complete a business plan under federal oversight.
Henderson said GM faced no pressure from the Obama administration’s autos task force to make a decision on whether to file for bankruptcy before an established June 1 deadline and said it was “feasible” that the automaker could still avoid bankruptcy despite the short time frame remaining.
Maybe it is just us, but there are a number of things that just scream “wishful thinking.” Like the return of Growing Pains to television, a re-do on the OJ Simpson trial, owning your own private island, or a widely successful debt-for-equity swap at General Motors.
General Motors Corp. is planning to make a formal offer to all bondholders by April 27 to exchange their $27.5 billion in claims for equity, according to a person with knowledge of the discussions.
Yes, we know, we know, the administration wants 66% of the original bonds whacked out via such a swap so their fantasy of a “surgical bankruptcy” can be realized (where “surgical bankruptcy” means “fail to piss off the UAW too badly”) but no one seems very likely to want to make nice-nice with this administration in a case like this (when being “nice” means giving up cash). This hasn’t stopped the administration from trying, though the latest efforts (concentrating on how bad it would be for Detroit if the bankruptcy turns out as anything but a blistering bit of unexpected caning for bondholders) seem a little familiar to us. Familiar sort of like the guilt trip your mother used to play on you when you were twelve. Or certain 1970s public service announcements.
GM Said to Plan All-Equity Offer for Bondholders [Bloomberg]
It is a pity that what is probably the busiest the Executive Suite over at General Motors has been in the last twenty years is during its current preparation for a bankruptcy filing. And as tempting as it is to regard a filing for bankruptcy protection by the automaker as something of a triumph of rationality, it is, in fact, the reverse. It should be quite difficult not to be beyond pissed off at the billions of cash, taxpayer cash, that has been burned over the last many months, all for the sake of the PR gloss of calling the currency whirlpool a “going concern.” This also bodes rather poorly for the many financial institutions that would seem to be in similar condition, though perhaps with slightly less advanced pathology.
Of course, the news could be little more than the latest bit of leaked brinkmanship, but we think that ship has sailed.
General Motors Corp is in “intense” and “earnest” preparations for a possible bankruptcy filing, a source familiar with the company’s plans told Reuters on Tuesday.
A plan to split the company into a new company made up of the most successful units, and an ‘old company’ of its less-profitable units is gaining momentum and is seen as the company’s best configuration for the future, said another source familiar with the talks.
Don’t worry. Nothing is fucked. We are beyond certain that the current plan to mass produce wheelchairs with windscreens (note the wheelie wheels on the back!) in partnership with Segway (free colostomy bag with every purchase!) will pull the chestnuts out.
GM in “intense” bankruptcy preparations: source [Reuters]