Bailout Watch 434: Memo to PTFOA: Original Bailout Terms
The Original Bailout Terms:
Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.
Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including:
-Firms must accept limits on executive compensation and eliminate perks such as corporate jets
-Debt owed to the government would be senior to other debts, to the extent permitted by law
-Firms must allow the government to examine their books and records
-Firms must report and the government has the power to block any large transactions (> $100 M)
-Firms must comply with applicable Federal fuel efficiency and emissions requirements
-Firms must not issue new dividends while they owe government debt
Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:
-Reduce debts by 2/3 via a debt for equity exchange
-Make one-half of VEBA payments in the form of stock
-Eliminate the jobs bank
-Work rules that are competitive with transplant auto manufacturers by 12/31/09
-Wages that are competitive with those of transplant auto manufacturers by 12/31/09
These terms and conditions would be non-binding in the sense that negotiations can deviate from the quantitative targets above, providing that the firm reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations.
In addition, the firm will be required to conclude new agreements with its other major stakeholders, including dealers and suppliers, by March 31, 2009.
[thanks to windswords for the link]
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- David S. For a single quarter, only ninth best-selling (estimated?) of 2022. Maybe ICE vehicles would sell at a similar rate if the government paid people to buy them too?!
- Dukeisduke I don't like how they've changed their nameplates and font from the Star Trek-ish LEXUS, to L E X U S, kinda like VW's lettering on the back of the T A O S, or those stick-on letters you can buy at the parts store that people use to their own names on the back of their cars.
- Dukeisduke So, the screen goes blank for two-tenths of a second, every once in a while - what could go wrong?
- Dukeisduke "Hello, IT. Have you tried turning it off and on again?"(Roy in The IT Crowd)
- Dukeisduke Just Say No To Bugs!
windswords Text amended. No clue.
From http://babylon5.wikia.com/wiki/Wind_Swords The Wind Swords are a Minbari warrior clan. They were amongst the most radical in Minbari society. In ancient times, the Wind Swords were a mounted force probably with an emphasis on sword fighting. The Wind Swords are the most militant of all the warrior clans and jingoistic to the point that they will do anything to defend their world, even bypassing the circles of authority. Mentioned in the season 1 episode "Deathwalker".