WORLD> America
    Bankruptcy remains an option for GM, analysts say
    (Agencies)
    Updated: 2009-02-19 09:41

    DETROIT  – A government-backed bankruptcy reorganization remains an option for saving General Motors Corp and Chrysler LLC, analysts said on Wednesday, even though the automakers have said they would rather not go down that road.


    Car salesman Ray Schaffer (L) shows a customer a 2009 Chevrolet Impala sedan at a dealership in Dearborn, Michigan December 29, 2008. [Agencies] 

    Related readings:
     Chinese automaker denies buying GM's Hummer
     GM, Chrysler seek more govt aid, to cut more jobs
     GM, UAW in talks racing toward Tuesday deadline
     GM's fall could help speed up restructure

    GM and Chrysler asked for billions of dollars more in federal aid on Tuesday and announced sweeping changes including capacity reductions and job cuts.

    Some Wall Street analysts were disappointed that the restructuring plans submitted to the US Treasury did not include key concessions from the United Auto Workers union and the automakers' bondholders.

    One analyst said that taking the bankruptcy option off the table would reduce the bargaining power of the companies.

    Both GM and Chrysler analyzed a possible bankruptcy filing in their restructuring plans but stressed that it was not their preferred method for reorganizing and that they hoped to avoid this scenario.

    GM, which has requested $16.4 billion in additional loans from the US government for a total of up to $30 billion, has said it would run out of cash as soon as March without new federal funding.

    The request came shortly after smaller rival Chrysler asked for another $5 billion in aid.

    GM's request that a sizable chunk of total aid come in the form of preferred equity rather than debt is a "tacit acknowledgment of the fact that GM may emerge from an out-of-court process as a still highly levered firm," JP Morgan analyst Himanshu Patel said.

    David Leiker, analyst with Robert W. Baird, still sees bankruptcy as the best option for a reorganization.

    "Though likely to be painful near-term, we continue to believe that the challenges to restructuring GM and Chrysler are too complicated to be met outside of a bankruptcy," Leiker said.

    In its restructuring blueprint, GM estimated that if it were forced to reorganize in a traditional bankruptcy, the tab for the government could touch $100 billion in bankruptcy financing.

    Chrysler estimated that the bill for its bankruptcy could hit $1,200 per taxpayer.

    GM also outlined cost-reduction actions but still has to reach an agreement with its bondholders and the UAW on how to reduce the roughly $48 billion it owes both groups.

    An equity-for-debt swap, which is being considered, could significantly hit stockholders.

    "A substantial majority of the pro-forma equity in General Motors would be distributed to exchanging bondholders and the UAW VEBA," Credit Suisse analyst Chris Ceraso said. "The existing equity holders would largely be wiped out by the bond and VEBA exchanges."

    The UAW VEBA is trust fund set up to cover employee healthcare costs.

    Another issue that could crop up for auto investors is the potential for "going concern opinions" from auditors due to the liquidity crunch, operational losses and solvency issues in the auto industry, according to Grant Thornton, a corporate advisory and restructuring services firm.

    A going concern opinion is a statement that there is substantial doubt about the entity's ability to continue as a going concern, something that would be typically mentioned in US Securities and Exchange Commission filings by companies.

    "It's important for the public, the supply base and all of the parties involved in restructuring the auto industry not to overreact if they start seeing 'going concern' opinions," said Kimberly Rodriguez, co-leader of Grant Thornton's global automotive team, adding that the radical restructurings GM and Chrysler are undertaking would ultimately help salvage the industry.

    GM shares were down 9 cents or 4.13 percent at $2.09 in afternoon trading on the New York Stock Exchange.

    AAA级久久久精品无码片| 亚洲国产精品无码一线岛国| 亚洲av中文无码乱人伦在线r▽ | 亚洲精品无码专区2| 精品人妻系列无码一区二区三区 | 亚洲精品无码av人在线观看| 欧美日韩中文国产一区发布 | 无码人妻久久一区二区三区蜜桃 | 久久午夜无码鲁丝片秋霞| 中文字幕网伦射乱中文| 精品无码久久久久久午夜| 人妻无码αv中文字幕久久琪琪布| 中文字幕乱码人在线视频1区| 潮喷大喷水系列无码久久精品| 亚洲真人无码永久在线| 亚洲日韩VA无码中文字幕| 亚洲中文字幕无码不卡电影| 亚洲综合无码一区二区| 亚洲AV无码乱码在线观看富二代| 中文成人无码精品久久久不卡| 亚洲av中文无码乱人伦在线咪咕| 久久青青草原亚洲av无码| 精品久久久久久无码人妻热| a级毛片无码兔费真人久久| 久久午夜伦鲁片免费无码| 无码人妻精品一区二区三区66| 无码乱码av天堂一区二区| 中文字幕一区二区三区日韩精品| 超清无码无卡中文字幕| 国产中文字幕在线| 日本一区二区三区精品中文字幕| 人妻AV中文字幕一区二区三区| 性无码专区| 亚洲精品无码鲁网中文电影 | 久久中文字幕视频、最近更新| 亚洲成人中文字幕| 亚洲一日韩欧美中文字幕欧美日韩在线精品一区二 | 国产在线拍偷自揄拍无码| 精品久久久久中文字| 亚洲一区精品中文字幕| 亚洲制服中文字幕第一区|