GM Headed for World's Largest Chapter 11 Filing

Edward Niedermeyer
by Edward Niedermeyer
gm headed for world s largest chapter 11 filing

GM bondholders have only tendered “a low-single digit percentage” of GM’s $27 billion debt-for-equity swap offerings, reports Reuters. This (along with unfolding government/UAW deals) sets GM on a crash-course for bankruptcy, and a filing is expected as early as tomorrow, according to another Reuters report. Both stories are replete with quotes arguing the inevitability of GM’s debt-swap failure, although with a 90 percent required participation it didn’t take a professional analyst to figure out that GM’s offer was DOA. Next stop, bankruptcy court.

Join the conversation
4 of 21 comments
  • DaddyOfPayton DaddyOfPayton on May 27, 2009

    The US can't go bankrupt..they'll just raise taxes until it equals out. My economics textbook says so. Wait, what is a Laffer curve? Who was Keynes? It's too hard, I'll just vote however my union steward tells me.

  • Quasimondo Quasimondo on May 27, 2009

    Chapter 11. It's what you've asked for. Just remember that.

  • U mad scientist U mad scientist on May 27, 2009
    Guys, relax. They can just PRINT MORE MONEY! It means we’ll all be millionaires soon!!! The US can’t go bankrupt..they’ll just raise taxes until it equals out. My economics textbook says so. Yes, people should remember how bad the choices are now so next time they could be reminded not to make the mistakes that led to this.

  • Ohsnapback Ohsnapback on May 28, 2009

    This will mark the official beginning of our next 'Great Depression.' Think I exaggerate? Wait a few months. People have no idea how many knock on effects this is going to have. The government and their advisers, both legal and industry experts, admit as much. It's going to be a deep, dark time in the USA, and many other countries, I might add.