GM and Chysler Bankruptcies

[kandrathe]

<blockquote>Chrysler heads to court for key bankruptcy hearing

NEW YORK (AP) — The future of Chrysler hangs in the balance as it heads to court Wednesday to ask a bankruptcy judge for permission to sell the bulk of its assets to a group headed by Italy's Fiat in hopes of saving itself from liquidation. Attorneys for Chrysler LLC maintain that the deal with Fiat Group SpA is the company's only hope to avoid being sold off piece by piece, but the agreement remains controversial with more than 100 objections to the sale filed by the automaker's dealers, bondholders, former employees and others.</blockquote>Now the process for Chrysler is to have Fiat slice off the intellectual property and any profitable portions, while the old Chrysler disappears and whomever was holding its stocks and bonds get pennies in return.

<blockquote>US likely taking majority ownership of GM

NEW YORK (AP) — In the end, General Motors' massive cash needs likely trumped any chance of the automaker avoiding a bankruptcy court-supervised reorganization. General Motors Corp. is expected to announce early Wednesday that only a small fraction of the holders of its $27 billion in bonds agreed to swap that unsecured debt for a 10 percent equity share of a recapitalized GM.</blockquote>GM is worse. The new government owned GM will be a new company that will get all the good parts of GM, whereas all the debts and obligations will die with the old GM, and again, the bond and stockholders will be left with squat.

And, here I was all upset when Chavez nationalized the Cargill subsidiary in Venezuela. I doubt Chavez owned any Chrysler or GM stock. Too bad.