“Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets,” GM said in a statement on Friday. “But bankruptcy protection is not an option GM is considering. Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers.” Yes, well, Barclays analyst Brian Johnson wrote a note to investors yesterday. According to CNBC, Johnson estimated that GM would need to raise $10.3 billion to maintain liquidity of $14 billion through 2009. That figure was up from his earlier estimate that put GM’s cash-raising need at $7.3 billion over the same period.” But hey, what’s $3b between friends? Meamwhile, pressure continues to build on GM CEO Rick Wagoner and the otyher executives holed-up in GM’s RenCen bunker. After Standard & Poor’s put GM’s on Credit Watch, an the automaker’s share price dove to $4, S&P analyst Robert Schulz told Bloomberg Television this morning that the automaker may be forced to seek protection from creditors. “Macro factors could overwhelm them at some point.”
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“But bankruptcy protection is not an option GM is considering,” it said. “Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers.”
Versus what?
But I thought the fundamentals of our economy were strong?
“Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers.”
What they really meant to say was, “Bankruptcy would not be in the interests of our executives, our stock portfolios, our golden parachutes, or our board of directors.” Like they care about anybody else but themselves.
Wow. What kind of denial and insanity is that company being run with?
When I met Buzz Hargrove, he quoted that word for word out of Rick Wagoner’s mouth. “Bankruptcy is not an option.” So Im not surprised to see it here, it’s probably going to be a company line soon enough.
Of course, for it to be an option would imply that another alternative is possible. If it is inevitable, than, perversely, the statement is true- It is not an option.
Hahaha, what a load of BS. Here’s a secret: When a business starts denying that they’re headed for bankruptcy protection, they’ve alread completed like 85% of the filing papers and are on their way to court.
My wife worked at Musicland (former parent company of Sam Goody, Suncoast Video and Media Play) a few years ago, and the first thing they did that really showed they were going down was they told their suppliers they were moving to 60 day rather than 30 day payment terms. Then there was bla bla about how the future was still rosy, and then 6 months later they were sold to Trans World Entertainment.
We’re either going to see some kind of additional Federal bailout as GM capitalizes on the worldwide economic panic or we’ll all be buying cars from a Chinese-owned GM by the time 2010 finally rolls around.
I’m guessing that’s not a “29%” pin on Rick’s lapel……
I am not surprised by this line either. It’s simply a group of people trying to assert their desires into reality. They want it to be true that GM is too big to fail, so they are all going to say it until it’s true.
Ironically, it is true, as Samir points out. It’s not an option, it’s an inevitability.
I want to be CEO. I would work to lose money. The board would love me.
Now GM is worth less than Oprah.
Famous last words. I might have to do a Google search later today to see how many CEOs made this claim shortly before their companies when Chapter 11.
I know that this worthless company destroying piece of shit is consulting his personal attorney’s on a daily basis to determine how to best protect his golden parachute and pension.
At least he owns 35,290 shares, which means he lost a bit more than $1.3 million in the last year. Unfortunately the company destroyer’s base pay is $3.36 million.
Bankruptcy is not an option ………….. today. Tomorrow or in the very near future………….. maybe. But not today. You never say you are filing for bankruptcy until AFTER you’ve already filed.
pls
According to the Forbes 400 GM is worth less than 144 individual Americans, but as of today Oprah would need another $100 million.
http://www.forbes.com/lists/2008/54/400list08_The-400-Richest-Americans_Rank_7.html
“Bankruptcy is not an option. That is, until we declare it.”
Oh Ricky you’re so fine, Oh Ricky you’re so fine you blow my mind! Oh Ricky!
I wouldn’t be surprised if he becomes the poster child for excesses in CEO pay 2-3 years from now. It’s absurd to think that you can destroy over 95% of a corporations value AND get pay bonuses along the way.
The only way this makes sense if if somewhere, Ricky has got pictures of the board members doing some really nasty, disgusting stuff with barn animals.
GM shares are back over $5. That’s a good sign, right?
Aw screw it, it’s not worth my time anymore. Is the Mitsubishi Lancer Evo X any good?
“Bankruptcy is not an option”. Is insolvency?
We all know profitability is definitely not an option.
Good point Samir….what is the definition of “is”?
Anyone who has worked for one of the Big 3 knows that the big dogs are saying one thing at the same time as they are reviewing the media relaease confirming what they are denying. Kind of like how can you tell when there lying, their lips are moving.
And Rick thinks he will get to make the C11 decision. More morphine in his drip please. The market and Wall Street will decide when enough is enough. Any other company would not only have fired his ass but be in receivership right now.
He is correct “bankruptcy is not an option” it is “THE” option. I think the GM CEO went to the Bill Clinton school of parcing and double speak.
Rick et al has to toe this line right now. They need their dealers and suppliers to believe that they are doing everything possible to avoid Chapter 11….so they don’t get sued for strategically going into chapter 11 just to wean off all those dealerships, UAW contracts, and that umteen billion they borrowed just a year ago.
Furthermore, if they still get sued….then fine. But what they need to avoid at all costs is a criminal suit.
“Bankruptcy Not an Option”
It’s a standard feature on all of fine cars and trucks, just like airbags and anti-lock brakes.
too bad Return to Greatness is not an option,at least one Red Ink Rick would consider. then again, he wants this bk. also why he belongs in prison. there are laws against lying to investors. no one is as stupid as these people appear to be.
As the successor to Baghdad Bob, we now have RenCen Rick!
I’ll take Complacency for 100, Alex.
As it happens, I’m listening to Steely Dan…
Are you with me Doctor Wu?
Are you really just a shadow
Of the man that I once knew?
Are you crazy, are you high?
Or just an ordinary guy?
Have you done all you can do?
Are you with me Doctor…?
Bankruptcy is not an option. However, shutting down all north american operations, and selling Opel and Buick to the chinese IS an option. Maybe keep Holden?