General Motors (GM) Bankruptcy: Tale of two legal processes
Filed under: Autos
We will see a tale of two legal processes unfold next week when General Motors Corp. files for bankruptcy protection. One tale will be that the bankruptcy judge will be told that a new entity will emerge, the other is that GM creditors will argue for who will get company properties that the automaker no longer wants.
Bloomberg certainly has a strange but interesting outlook on this bankruptcy filing. The new company would have an array of vehicles from General Motors Cadillac, Chevrolet, Buick and GMC divisions, and they have plans to start making money within 60 to 90 days. All this while a bankruptcy court sells or liquidates some of GM’s less profitable brands, these include the ill fated Saturn and Hummer.
Creating a new company seems to be the way to go for troubled automakers, GM’s smaller rival; Chrysler LLC is on schedule to create a new leaner company. This will happen faster than General Motors plans, and as a result will be stripped of millions of dollars worth of debt.
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