GM gone by the end of the month?

[Malfunction Junction]

Originally Posted by GTRMagic

Does that mean Holden is destined to be taken over by the people that brought is the awesome Purvis Eureka?

Anybody want to bet against Walkinshaw? Horrible thought isn't it.

[touring fan01]

Originally Posted by Malfunction Junction

Anybody want to bet against Walkinshaw? Horrible thought isn't it.

I would bet my house against Walkinshaw!

He doesn't have access to anything like the financial resources - or the necessary good business reputation/credibility to be able to borrow anything like what is needed.

[peckstar]

Originally Posted by GTRMagic

Meantime it seems Saab now has a shiny new owner Here

Does that mean Holden is destined to be taken over by the people that brought is the awesome Purvis Eureka?

just for the young blokes

[GTRMagic]

Holden appears to be technically insolvent Here

Originally Posted by The Article

Deloitte partner Clive Mottershead said Holden's "interdependence" with the now bankrupt GM, combined with the car maker's $US70 million ($A86.8 million) annual loss and the fact that current liabilities exceeded current assets by about $US250 million, cast uncertainty over the Australian operations.

"These conditions … indicate the existence of a material uncertainty which may cast significant doubt about (its) ability to continue as a going concern", Mr Mottershead said.

In the world of international cross-guarantees, and the parent resides in Chapter 11, the guarantee is worth as much as a Bond Corp share

If the parent does pump a few hundred million onboard... it seems pretty clear from the article that the company is a cashburner not a cashgenerator... so it will delay the inevitable...

There are laws in the country about trading while insolvent.. presumably they got a legal opinion as to whether that event was triggered by the Chapter 11 filing of the parent... or not...

[Chris - Melb]

If Holden owns Daewoo, as stated
here , then things are looking even grimmer here

Here's hoping that governments are willing and able to assist. Or Roger Penske; where are you?! Although I think Roger would simply move Holden production offshore...

[Bimmerhead]

Is that a fat lady I hear gargling in the dressing room???

[rdmdog]

Record car sales in Australia last month.

Chinese buyer for Opel http://bigpondnews.com/articles/Busi...el_349403.html

Maybe it's not the end of the world.

For some time many people in V8s have summised that the exclusion of manufacturers might not be the end of the world anyway. Lack of support seems to not have hurt 888 so much.........

[petebendon]

Originally Posted by rdmdog

For some time many people in V8s have summised that the exclusion of manufacturers might not be the end of the world anyway. Lack of support seems to not have hurt 888 so much.........

just cos ford arent funding t8 now doesnt mean they still dont have the flow on benefit of the blue oval cash from last year...........they got paid by ford to develop the fg.........the work they did didnt become irrelivant overnight when the check stopped..............geez stoopid argument

[fomoco]

Interesting read from THe Washington Post on the Judges decision,
Bankruptcy Judge Approves GM Sale

they still have until Thursday to lodge an appeal against it. To a vast marjority, it seems logical to go this way, to others they would loose, so if you had to weigh it up is Aus terms.

83 % will benifit
17 % would loose under old GM

If you went with the heart,GM into liquidation, no one would get a dime.

A federal bankruptcy judge late Sunday night approved a sale of General Motors's assets to a new government-backed company, setting the stage for the largest U.S. carmaker to complete a restructuring plan at the heart of the Obama administration's efforts to overhaul the ailing auto industry.
U.S. District Judge Robert Gerber issued his decision after three straight days of hearings that ended just before the long holiday weekend. Gerber agreed with government and GM lawyers who argued that the restructuring plan was the only option available to save the automaker, once the crown jewel of American manufacturing.
"The only alternative to an immediate sale is liquidation -- a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates," he wrote. "In the event of a liquidation, creditors now trying to increase their incremental recoveries would get nothing."
GM and the government are preparing to complete the sale by later this week, a source familiar with the matter said.
The bankruptcy -- the largest ever by a U.S. industrial company -- drew hundreds of lawyers, protesters and media who filled a lower Manhattan courtroom as well as several overflow rooms.

Under the plan approved by Gerber, GM's desirable assets would be sold to a "new," leaner GM, to be 61 percent owned by the federal government, while the assets and liabilities deemed to be a drag on the automaker would be left behind in bankruptcy.
The Obama administration, which has repeatedly said it does not want to run companies, hopes to sell its stake in the new GM sometime next year.
If GM and the government close the deal this week, the automaker would have emerged from bankruptcy in about 40 days, far quicker than the 60- to 90-day timeline previously announced.
A similar sale of assets was recently pursued by Chrysler, which filed for bankruptcy on April 30 and emerged just 42 days later. GM attorneys repeatedly evoked the precedent set by the Chrysler sale during the GM bankruptcy proceeding, which was far less contentious. Chrysler's objectors unsuccessfully pursed the case all the way to U.S. Supreme Court.
In the GM case, bondholders, retired employees and tort claimants had objected to certain aspects of the plan. Some had argued that the government-orchestrated rescue of the largest U.S. automaker could have been done thorough a more traditional bankruptcy process, which would have allowed creditors more say.
Michael Richman, an attorney for three individual bondholders, accused the Obama administration of circumventing bankruptcy rules and willfully limiting GM's options to the lightening-fast sale, or liquidation. Richman urged the court to stand up to an "overbearing" government, saying GM was in no position to do that for itself. GM lacks the "independent will to fight back," he said.
Government attorneys countered that it was pursuing a sale through established law and that the transaction not only is "extremely favorable" to the automaker but the "only one in sight."
Harvey Miller, the veteran bankruptcy lawyer representing GM, told Gerber that the objectors were not seriously opposing the sale but merely complaining because the "pie is not big enough" to satisfy the needs of every stakeholder. Miller pushed for a speedy approval, urging Gerber not to "gamble" with GM's assets, the welfare of its employees and the broader economy.
Throughout the court proceedings, the government and GM were repeatedly questioned about why they chose to assume certain assets and liabilities while rejecting others.
In response, government and GM officials said the only measure was whether or not the assets and liabilities would support the commercial viability of the new GM. Those deemed helpful to the cause -- for example, benefits for the skilled workforce represented by the UAW -- received more favorable treatment than those deemed to be a drag, such as benefits for retirees.
Prior to the June 1 bankruptcy filing, the Obama administration's auto task force won a concession from institutional investors holding slightly more than half of the $27 billion of the automaker's unsecured bonds for a 10 percent stake in the new GM. In addition, the bondholders are to receive warrants to buy an additional 15 percent if certain conditions are met. The United Auto Workers would get a 17.5 percent share. The Canadian government, which has also provided funding, would get 12.5 percent. Existing shareholders would be wiped out.