http://freebeacon.com/general-motors-is-alive-for-now/
A backroom deal hatched by General Motors during the auto bailout to
fulfill the Obama administration’s demand for a quick bankruptcy could
be reversed, draining the automaker of nearly all of its cash on hand
and leaving it in worse shape than it was when it collapsed in 2009.
As GM teetered on the edge of bankruptcy in June 2009, it cut a $367
million “lock-up agreement” with several major creditors in order to
prevent its Canadian subsidiary from going under. The move spared the
subsidiary from fulfilling the $1 billion debt it owed the
creditors—major hedge funds—ensuring that GM would not have to face
bankruptcy courts in two nations, which could have delayed the company’s
recovery.
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