U.S. Treasury to give GM $50 billion more to survive through bankruptcy

GM had offered bondholders a 10 percent stake in the restructured company to reduce its $27 billion debt and avoid going into bankruptcy court. However, yesterday GM failed to gain the near 90 percent of bondholder support to accept a debt-for-equity swap. Sources say that GM is now planning to file for Chapter 11 bankruptcy by June 1.

According to a report by the New York Times, the U.S. Treasury will have to inject an additional $50 billion to get GM through Chapter 11. It has already loan more than $20 billion to the struggling automaker. In return for its ‘investment,’ the U.S. Treasury Department will receive...
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HSCenterconsole - 5/28/2009 9:40:17 AM

0 Boost

The Federal government is wasting more of our taxpayers money by throwing billions more at a failing company.

M53R - 5/28/2009 11:38:03 AM

-2 Boost

GM needs some time to get back on its feet. It's on the right track, but it started late and this economy didn't help either. On the other hand Chrysler....???

bfghemicuda - 5/28/2009 2:56:12 PM

+3 Boost

Chrysler was on the right track. They were derailed by Diamler. they finally got Diamler off their back and need to get away from using old Benz parts. Long live ma mopar

veyron1001 - 5/29/2009 3:15:49 PM

+1 Boost

You mean old Benz parts that are significantly better than what Chrysler had to offer. Chrysler had the choice.

veyron1001 - 5/29/2009 3:18:29 PM

+1 Boost

Just perfect. The american dollar is going down and now gas and consumer goods companies are taking advantage of the summer and jacking up prices.