The Obama - Clinton Disaster Message Board

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Politics : The Obama - Clinton Disaster

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To: Neeka who wrote (1493)	11/17/2008 9:46:23 AM
From: DuckTapeSunroof	Read Replies (1) of 103300

GM (& Ford, & Chrysler) are a tough call right now. Ordinarily (And... I PERSONALLY believe that this is still true even right now in the depths of our recession) the very best approach would be to take them into bankruptcy reorganization. Because, there is absolutely NO WAY they can thrive carrying the debt loads that they currently do. So: 1) establish a Conservatorship for GM (the worst off of our auto companies right now), with the feds helping the Courts do this in a rapid manner. 2) extinguish the stock. (GM's stock has practically already vanished anyway, having fallen more than 95% to where all the stock classes are only trading for about $5 Billion.) This finishes wiping-out the stockholders. 3) then, the Conservatorship force-converts perhaps about HALF of ALL OF THE EXISTING GM DEBT HOLDERS (all bonds, loans, including any new loans that the federal government might choose to make at this point to help them emerge from bankruptcy as a viable and vigorous manufacturer) into shares of new stock (perhaps preferred shares for the government... senior to all the others) and GM emerges from Conservatorship shed of fully half of it's debt load... now a viable company. Problem solved.

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