If You Don't Believe....

[ecdriver711]

They did go bankrupt (reorganized) a month or to later. The union got 80% on the dollar and stockholders less then 20%. Political Payoff

 

[ecdriver711]

http://money.cnn.com Hope this link works, I don't have much practice.

 

[WilliamH]

http://money.cnn.com Hope this link works, I don't have much practice.

So which story are we supposed to look at?

 

[ecdriver711]

http://www.huffingtonpost.com/2009/06/01/gm-bankruptcy-begins-ny-d_n_209605.html

This is better I hope. GM filing bankruptcy after bail out.

 

[Folks]

LOL the first post you silly peeps!

Dusty; I always thought you as a Cockadoodledoo or at least a pluck pluck but never a peep.

 

[Smitty901]

When a company goes bankruptcy, the debts, including bonds, get washed out. That's the point of bankruptcy. They saved the automotive industry in the United states, which I think was a big deal.

What your are ignoring is how they by passed bankruptcy law on Bond holders. Bond holders had rights that are in place to help companies raise money.
Otherwise they would not have invested it.

 

[Smitty901]

Again, the point of bankruptcy is to wash out the debt and give the company a fresh start. the right to go bankrupt is enshrined in the Constitution.

You don't know much about it. Bond holders are treated different . That is why the law was there.. And you are incorrect on bankruptcy the laws on that where change in a major way many years a go . look it up.

 

[Chris F]

They did go bankrupt (reorganized) a month or to later. The union got 80% on the dollar and stockholders less then 20%. Political Payoff

No, political payoff. The bankruptcy laws give employees a priority in a reorganization, since you can't run a company without workers. Management employees get the same priority. nf fact, management (who were responsible for putting them in the hole in the first place), usually get a bonus to stay on. Note that the union contract got voided and was renegotiated. That's the way the law has worked from at least 1980 (last time I took a class in bankruptcy law) and was substantially amended under Reagan.

 

[Chris F]

You don't know much about it. Bond holders are treated different . That is why the law was there.. And you are incorrect on bankruptcy the laws on that where change in a major way many years a go . look it up.

Actually I know enough to say that debt gets reorganized along with the equity. Usually, the debt gets equity, and equity gets squeezed out.

 

[ecdriver711]

The Tax funded bail out money given to GM was a political pay-off. GM took the money then filed bankruptcy. The bail out money was to prevent bankruptcy (news told to the public). And NO, they did not pay all the money back to taxpayers. More then 20% of the debt was forgiven.