Old cars are often more valuable when sold off as parts than as a whole car. But when you're done you still have most of the car left, an immobile hulk that must be hauled away.
GM Bondholders Try To Block Firm's Sale
By Tomoeh Murakami Tse
Washington Post Staff Writer
Friday, July 3, 2009
NEW YORK, July 2 -- One of the main challengers to the proposed sale of General Motors on Thursday urged a federal bankruptcy judge to act as a check on an "overbearing" government and reject the restructuring plan pursued by the Obama administration.
The government, pushing the limits of its power in stressful economic times, made a "conscious, strategic decision" to circumvent a traditional reorganization plan, said Michael Richman, an attorney for dissident GM bondholders.
His comments came during closing arguments on the third and final day of hearings to approve the sale of the automaker's profitable assets to a new, leaner GM to be 61 percent owned by the federal government.
Judge Robert Gerber adjourned the hearing late Thursday, after three days of marathon oral arguments and testimony. He did not indicate when he would render his decision.
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They Are Right
The bond holders are right to do this. There is no damn way, even with accepting the government money, that the government should re-write the bankruptcy rules, just for those who took the money. It's damn wrong for the unions to get a piece of the company and placed in front of the bond holders.
People don't seem to realize and/or care that the bond holders of GM are many times people who have pension plans with companies and/or state and/or local government.
People don't seem to realize
People don't seem to realize and/or care that the bond holders of GM are many times people who have pension plans with companies and/or state and/or local government.
They realize it.
There is no damn way, even with accepting the government money, that the government should re-write the bankruptcy rules, just for those who took the money.
They did it to consumers. It's Corporate America's turn. After all they are the ones with the money.
The government could not
The government could not intervene at all--and it's likely that the bondholders would have nothing at all to fight over.