Friday, July 3, 2009

Concerning G.M. - that company with the magnificent management

Quoted without further comment:

"The largest U.S. automaker, following its smaller rival Chrysler LLC, is using the bankruptcy process to spin off a new entity with reduced costs and debt while leaving the old GM with unwanted property and obligations to creditors, dealers, retirees, accident victims and environmental agencies.

"The discarded assets will be all that creditors have to satisfy their claims as GM starts to unwind liabilities of $172.8 billion -- more than twice its reported assets."


Irene said...

Doesn't it follow that the old GM management also be discarded?

Irene said...

Creditors can "satisfy their claims" using your guillotine idea.

Bud said...

You would think there would be a housecleaning.