GM's Bankruptcy Plan Includes Forgiveness Of Federal Loans

General Motors Corp's plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

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Agent009 - 5/20/2009 8:53:05 AM

+7 Boost

For those of you who "thought" the bail out just a set of loans destined to be repaid. I guess your good side got the better of you. First Chrysler is forgiven and now GM wants to be. There never was any intention of repaying these hand outs. They were merely stop gap measures to buy them time to figure out what to do.

pageman - 5/20/2009 2:35:28 PM

+3 Boost

Just think, everytime you get your paycheck and look and that line from tax deducted, understand that you just supported the decline of GM and Chrysler. That may make you smile more.

vwrules - 5/20/2009 10:28:27 PM

-2 Boost

Wow we are sooooo broke, W and God as you Libs like to think of Obama busted this country for the next decade. Oh and Nancy special shout out to you and congress for a bang up job.