GM Should Run To Bankruptcy

Posted By: Asim Mohammed
After the developments of this week, if there is any intelligent life left at General Motors, it should run--not walk--to bankruptcy court. That may be the company's only chance to free itself from the triple-vise of unions, creditors and now President Barack Obama--who is by no means the least life-threatening of the lot.


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No more Bailout

Copy and pasted by Po-cheng Huang

Bankruptcy America

By Po-cheng Huang

BearStern, Lehman, Trump Entertainment, Delphi, even 250 years old company like Waterford Wedgwood filed for bankruptcy protection in this economic turmoil. The U.S. government had injected trillions of dollars into the economy, bailing out financial giants like AIG and Citigroup with money from the tax payers and issuing government debt to foreign governments, individual investors, and the Federal Reserve. With the foreign governments now show reluctances to purchase more U.S. debts, the Federal Reserve announced that it will spend another trillion dollars on buying 350 billion dollar Treasury bill and the remaining for Mortgage back securities. Now it raises the question, does the Fed have unlimited amount of money? When will the U.S. be able to pull itself out of debt? Who’s going to be carrying those debts? Or will the United States of America also ended up declaring bankruptcy? These are question that policy makers got to think about before printing endless amount of money, raising tremendous amount of debt and leave that to the next generation to help the failing financial institutions to survive while moves and actions taken to help the failing companies directly contradict to the free market belief that American have believed since 300 years ago.

Reference
http://www.nytimes.com/2009/03/19/business/economy/19fed.html
http://usconservatives.about.com/b/2008/11/20/no-more-bailouts.htm
http://www.google.com/hostednews/ap/article/ALeqM5jcTB9MbkEV5rd9YvlN-Fd92Ov6UwD970MPB05

U,S, government hires two bankruptcy fims for auto advice

Posted by SooYeon(Pia), Shin

The Obama administration has hired two bankruptcy firms to advise General Motors Corp. and Chrysler LLC. By hiring two law firms, the Obama administration is to assist Treasury Department officials on restructuring the struggling automakers. However, the government did not reveal plans for naming a trustee or “czar” to manage the process. The two law firms with bankruptcy expertise are Cadwalader, Wickersham & Taft LLP in New York and Sonnenschein Nath & Rosenthal LLP in Chicago.

Cadwalader, Wickersham & Taft LLP, founded in 1792, concentrates on bankruptcy, restructuring, and other areas of corporate law as well. The firm provided guidance to Norwest Airlines in 2007, which Delta Air Line took over last year. And, Sonnerschein Nath & Rosenthal LLP is a 103-year old international law firm which specializes in bankruptcy and public policy.

The U.S. auto supplier may request “as much as $25.5 billion in government aid to prevent an industry collapse.” GM and Chrysler have received $17.4 billion and are required to prove their viability until Feb. 17. The government official said that there will be no decisions made on restructuring until the companies submit their restructuring report. However, “Both automakers have said bankruptcy would likely mean dissolution, since they would be hard-pressed to come up with necessary operating cash.”

references:

http://www.bloomberg.com/apps/news?pid=20601103&sid=aiYhNRybaGwU&refer=us

http://money.cnn.com/2009/02/07/news/economy/autos_bailout.reut/index.htm

http://www.marketwatch.com/news/story/us-hires-bankruptcy-firms-automakers/story.aspx?guid=%7BD5F6AA86-41ED-412C-9206-5B626E6C7AD4%7D&dist=msr_3

http://www.businessweek.com/ap/financialnews/D965Q98G3.htm