GM's "IPO" Plan To Pay Back Bailout $$

GM's current plan is to use an IPO of shares to raise capitol to repay the bailout money they owe the taxpayers.

The thing that I do not understand is how is this an IPO if GM has been a publicly traded company for a long time?

 

It hasn't, that was "Old GM." That is a different corporation. "New GM" is privately held by the UAW, US gov. and Canadian Gov. During bankruptcy, the New Corp received most of the assets, most likely all of the production assets. The old corp retained most or all of the debt. The old corp is then wound down and the creditors are given little or nothing.

 

How about bond holders, what do they get?

 

Ask BHO, he illegally gave their rights to the unions...:down:

 

So basically the old shareholders got screwed so GM could stay open.

Just one more reason for me to be pissed off they got bailed out in the first place.

 

That's the risk you take when you buy stock.

 

First off I want to state that I have never owned any stock in GM.

I know there is a risk when playing the market but IMO this is a little different. It would be one thing if GM folded up but their doors are still open, they are still selling shitty cars and getting screwed by the union. Pretty soon it will be business as usual with the news reporting about the joy at GM because they only lost $600 billion and not the $900 billion they projected.

 

Kmart stuck their old stockholders and vendors with toilet paper. Before bankruptcy, they secured a $2 Billion line of credit, bought Sears in an $11 Billion dollar deal. I've got some of the old stock. Make me an offer.

Then there was good ol' WorldCom. They stiffed their stockholders and vendors and changed their name to MCI.

The GM deal was nothing new or particularly unusual, unfortunately.

 

They got, what could be appropriately called, the drive shaft. :up:

 

I feel sorry as fuck for all the guys that worked for GM for 30 years and put $150 of their paycheck in stock every week.

 

So other companies have received $787 billion of American citizen's money and then went on to stiff the same citizens?

 

The old timers back in the day yes, but workers in the last 20 years no.

 

$787 Billion? You might want to check that.

 

I am sorry, the $787 billion was the total amount of the stimulus package.

GM was on the hook for $49.5 billion to the US (they received another $1.4 billion from the Canadian government). $6.7 billion was an outright loan with the remaining sum being for ownership of just over 60% of the company.

 

Which has what to do with my response to your first tirade? Or do you just keep grabbing partial facts until something sticks then you've 'proved' that GM is the debbil and Obama is its spawn?

 

there cars arent that shitty, go back in the 80's and 90's yes, the newer cars are way better and stuff from japan isnt the holy grail like it used to be

 

That theory works until it is proven worong.

 

There is no and never was any tirade. I thought there were grown ups just discussing something.

I started the topic on a company that we bailed out and now own over 60% of. You start talking about things done in the private sector like it is the same thing. I see it differently but you feel it is the same thing. Instead of throwing around pejoratives why don't you state your point like an adult so that I can understand where you are coming from.

Thank you.

Their cars are shit and that comes from someone who has seen it first hand. I worked as a mechanic for almost 20 years, got hurt, and then did claims for several years.

You would do claims on American made vehicles that had 20k on them but out of warranty by time or cars 2 years old that were over 36k. They would need $4-7k in repairs. Intake manifold gaskets on the same engine for 15 years, AC condensers, wheel bearings/hubs, power window motors, ignition coils, God damn spark plugs blowing out of the cylinder on the same engine for 10+ years, ball joints worn out on vehicles with 25k miles on them, non-stop transmission claims because the same manufacturer with the spark plug issue doesn't know how to properly work with aluminum castings like all the other manufacturers do The list goes on and on.

You never got claims like that on Japanese vehicles. You would get claims like that on Mercedes all day long but with the exception of a specific issue with a specific model the rest of the European cars were fine.

I worked for another company that was partnered with the majority of the manufacturers. When calling them I would state that I contacting them on behalf of (insert manufacturer's name). After Land Rover and Jaguar owners the GM owners would really let me know how disappointed they were with their vehicles whether it be how the windows stopped working at 20k or the poor attitude at the dealership to how EVERYONE's spare tire holders under their vehicles failed the very first time they had a flat tire and now the dealer is trying to charge them a few hundred to fix it.

I am still in the industry and the stuff I see now makes think even less of the American manufacturers and I used to be a die hard Chevy guy.

 

You are a mechanic.....isn't the point that you fix cars when something happens to go wrong? My domestic cars have been very good.....seem to match what JD power Shows. 2 or 3 problems over a 3 or 4 year time frame. The problems are minor and fixed under warranty in a couple of hours. I've been using an 11 year old domestic car as my daily driver. The front window stopped working resently......that's it. I can't complain.

 

Stocks and bonds are two different things. Unfortunately people often do get the shaft on stocks, the bond holders however owned the material goods and equipment in GM, they were robbed. That doesn't happen every day.