General Motors: going bankrupt?

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Things become clearer for General Motors. While there is already a few weeks, some rumors of a possible bankruptcy, the Wall Street Journal drove the point home, in a "tire" is already well deflated ...

According to the newspaper, General Motors actually consider such an option, which would offer him the "benefit" to qualify for the protection of Chapter 11 of U.S. law on bankruptcy.

So, we can always - or almost - find less worse than worse ... a formula which is currently recipe.

It must be said that the period is most crucial for General Motors. With its competitor - and yet "colleague" in the debacle - Chrysler, a tough test awaits next Tuesday. Both at that time will present their plan for long-term viability. If able to demonstrate their durability, they must repay the federal funds already raised a tidy sum of 13.4 billion dollars.

According to the Wall Street Journal, citing "sources close to the" GM may also require additional financial support to the U.S. government.

Passage under the protection of Chapter 11 would give GM the opportunity to create a new company that would put all the viable assets of the manufacturer, namely some of its brands and its international activities. "The assets side would be liquidated or sold via the procedure provided by Chapter 11. The contracts with the holders of bonds, unions, dealers and suppliers would also be retired," says the newspaper.

Saturday a source close to the case had indicated to her that the talks between the union American automobile UAW and GM on cost reduction and debt's had white cabbage. Main topic of "discord": health coverage for retirees.

To recall, the manufacturer should the union about $ 20 billion, which are supposed to supply a fund health insurance for retirees.

Sunday, the U.S. administration called on all stakeholders in the automotive industry to reduce their "claims" in order to reach a compromise through which the current crisis. "We will have concessions from all the world, only workers in the automobile, but also shareholders, creditors and, of course, business leaders, said on Fox News, David Axelrod , a close advisor of President Barack Obama.

Echoing Obama's argument that the U.S. needed a strong automotive industry because millions of jobs depend, D. Axelrod has nevertheless stated that it would "involve major restructuring in this industry." For him, it must look ahead and produce the kind of cars people will buy in the future. " Vast subject ....

Councilor Obama appears firm: the White House n'interviendrat not on file by the presentation of the sustainability plans of GM and Chrysler on Tuesday. ( Source: All Forex News of Today )