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Non-Tech : GM - General Motors
GM 68.22-1.3%9:30 AM EST
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From: Arthur Tang7/2/2009 6:47:50 PM
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In chapter 11 reorganization, the surviving management decides the stockholders' fate. It may well be that stockholders will continue to own the company, if company can make a profit and satisfy all creditors. Such as selling all assets to MPA to pay off creditors, then buy all cars manufactured by MPA.

The original stockholders still own the part of original GM that sells cars to dealers and make a profit after resuming part of creditor's liability, whichever did not get paid off by MPA purchase of GM assets.

It is also clear, the Stockholders have tax loss carry over as their asset in GM.

Bankruptcy court has to approve sell of brands, which may have to have buy back rights, just like selling the brands by installment payments. You can repo the sold goods. This is very important since the buyers all have inadequate financial assets to buy brands from GM.

If GM management is not clear on the prepackaged bankruptcy, then some one at the white house has to explain to them. Or bankruptcy court may have to appoint a trustee to make sure creditors gets the MPA cash payment for the assets. And find the 30% ownership of Toyota stock certificates, GM invested in the 1970s. Some former GM management may have to aid the white house to look after this bankruptcy.
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