"Controlled bankruptcy" for GM

[unixronin]

So says the New York Times.

Under a plan being worked out by the administration, G.M. would file for bankruptcy, according to people briefed on the matter.  It would then use a sale authorized under Section 363 of the bankruptcy code to quickly sell off the desirable assets to a new company financed by the government.  These good pieces might include Cadillac and Chevrolet, as well as assets the company needs to run the business.

Less desirable assets, brands like Hummer and underperforming factories, would be left in the old company.

Proceeds from the sale, including stock in the new company, would be given to the old G.M., helping to settle claims.

The part of this I’m unclear about is which part ends up still being called GM.

Comments

[montieth.livejournal.com]

Splits like this are an odd reversal of the mergers from ages past where you had Caddilac and Chevy merging into a larger company. I just wish the old marques would come back with something unique and some profit. Maybe I'm just nostalgic.

I still don't like how the government has its fingers in everything. I damn well don't want to see a British Leyland for the Americas kind of thing. As Clarkson says, British Leyland, Cars built by communists.