I'd believe the numbers.......There was an outrage several years ago when there was the union guys had to pay part of their healthcare. I remember the number being $60 per month for a family of four. I also remember paying more than that for a cell phone at that point. There is a pretty big divide between the salaried workers & the union workers because of things like this.
BK wipes out the unsecured creditors... pension long term commitments etc. Shut down all operations and auction and liquidate all of its holdings. Better than turning over operations to the feds and wiping out the shareholders via preferred redemption. Let smaller more agile car companies emerge buying out their assets and operations for 10 cents on the dollar.
Oh management has done it's level best to drive the company into the ground. And not the current dopes, but a line of them reaching back into the past couple decades or so. Back in the 90s, damn near every decision needed to be run through the 14th floor (where the board was in the GM HQ prior to moving to the RenCen). Everybody knew that buying EDS was a major mistake, but it took years to overcome that problem.
Right after it wipes out shareholders, who are even further back in line than unsecured creditors. So the question remains - what is a $15/share valuation based on?
Runs out of operating cash by year end. http://www.bloomberg.com/apps/news?pid=20601087&sid=ak38ELoZnn68&refer=home
I found some GM bonds priced at $275/bond with a 7.7% coupon. Current yield of a whopping 28%. Great buy if GM is able to stay afloat and keep paying their bondholders. http://reports.finance.yahoo.com/z2...0000&ytl=-1.000000&ytu=-1.000000&yu=-1.000000
Companies are a bit like people in that they have 1. youthful energy and enthusiasm then 2. mature into money making machines then 3. slip into senility as the slugs move into top management to fill their own wallets. then 4. its all over and the vultures move in for a big feed off the carcass