In the pigs-will-fly department, newly installed GM CEO Fritz Henderson told the Financial Times that “private investors are interested acquiring a stake in Opel.” Wow. Really? We know that there are a number of people who’ve expressed interest, amongst them such unlikely prospects as some Opel dealers and the workers council. But do they have the wherewithal, the money, and the blessing of the German government, which would have to guarantee a large chunk of the loans needed, and seems to be more reluctant to do so as the days go by?
There also could be a number of people who’ve expressed interest in order to take a peek at Opel’s plans during the due diligence phase. Says the FT:
Amid growing disbelief that GM would find anyone willing to inject cash into Opel, Fritz Henderson, chief executive of the carmarker, told the Financial Times that Commerzbank had identified some interested parties but declined to identify them. He predicted that GM could end up with a minority stake in Opel.
Haven’t we heard that before? Well, maybe not from Fritz. In the bankruptcy-is-not-an-option department, Fritz is changing his tack. He’s threatening to go under.
Mr Henderson also turned up the heat on the carmarker’s creditors and unions, saying a bankruptcy could ‘very well happen’ unless stakeholders agree to an aggressive restructuring plan…
“There were many people saying: ‘well, the government would never let that happen’. Well, it’s pretty clear that’s not the case.”
Wow. Really?
Hey, I think that losing the Guiding Light and General Motors in the same year is definetly Apocoliptical and very, very ,very bad for the country.
Ford stock is 1$ over GM’s… how many of them can I buy?
So now is it just a game to see how low GM stock can go before they go C11? Is there even one GM exec that believes the bullshit that’s coming out of RenCen? I’d like to say I plan to ignore this for another 55 days or so, but my morbid curiosity (and the fact that GM’s future kind of affects my own) won’t allow it. Can GM at least get on the same page with reality? I’m gritting my teeth here, reading this shit.
Technically, there are plenty of interested buyers for anything. I am interest in buy Crys-lie, if the terms are right.
But the problem is, will all the stake holders of Opel or Crys-lie agree to the best available market offer?
And here is a ChryCo Bonus! The WSJ is reporting this afternoon that the new would-be owners of Chrysler-Fiat ain’t so crazy about owning so much prime Detroit real estate.
Fair Use Extract:
Banks that loaned Chrysler LLC $6.8 billion are resisting government pressure to swap $5 billion of that for stock to slash the car maker’s debt, according to several people familiar with the matter, hindering Chrysler’s effort to restructure outside of bankruptcy court.
The issue is also slowing the company’s drive to cement an alliance with Fiat SpA by May 1, and stalling Chrysler’s attempt to renegotiate a health-care agreement with the United Auto Workers union, according to these people……
…The lenders, which include J.P. Morgan Chase & Co., Goldman Sachs, Citigroup and Morgan Stanley, hold great influence in moving the process along. As holders of secured debt, they own the rights to take control of Chrysler plants and assets, which were pledged as collateral for the loans, if the company files for bankruptcy protection.
As a result, Chrysler may be worth more to the lenders in liquidation than if they agree to restructure their debt, and the government has little leverage to force them into concessions.
# MikeInCanada :
April 3rd, 2009 at 4:24 pm
As a result, Chrysler may be worth more to the lenders in liquidation than if they agree to restructure their debt, and the government has little leverage to force them into concessions.
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Confiscating private properties? Even Cuba doesn’t do that kind of thing too often.
It’s one thing to be a sugar daddy, it’s another to perform robbery under daylight.
Re WSN –
While having Bankers act in their own best interests is pretty typical (I did not say bad, just typical) here is the best quote from the article:
Fiat, meanwhile, is open to a Chrysler bankruptcy filing if the Italian car maker can get a consensual agreement with at least some of the creditors, according to two people familiar with the matter
That’s the kicker – Fiat could not give a Sh*t about ChryCo – dead or alive. What a partner!!
The wild card in all this is that the banks holding this debt are also recipients of TARP monies. I would expect the Gov’t to try and pull that lever – a lot.
your photos are so appropriate, thanks for the effort.
The monetary system is one big counterfeit racket…Do you realize this?
Yes. In the sense that paper money, etc. requires that society as a whole believe in the consensual illusion that it has value when in fact it cannot be eaten, used to live in, or really much of anything intrinsically. What’s your point? What do you plan to do about it? Go back to bartering pigs for corn?
Does anybody really believe that Fiat wouldn’t prefer a PP Ch.11 for CLLC?
Damn, I expect that in the CLLC-Fiat Alliance Framework Agreement Fiat demands this…
Doesn’t seem to be a problem for the current stakeholders Daimler (who has written its share down to zero), and Cerberus, who’s brain Steve Feinberg, is running around in D.C. (again, as in December) offering to give-up his equity in CLLC if it will help the cause (and if, in consideration, the gov’t will allow him to merge Chrysler Financial into GMAC.)