Bankruptcy Gm Stockholders
OK, what happens to GM (General Motors) stock?
Question: If GM is divided into two companies, as suspects in the bankruptcy, a good, the bad, what happens to shareholders? Proponents of GM stock is destroyed? Or in the shares in the company of good and bad company dissolved little by little?
It depends on the reorg. The company may issue shares divided in a proportion of the population of GM, with all stakeholders to obtain a proportionate number of shares. It is also possible that the spin-off could be a private sale to a holding in this case, the shareholders of GM to see a further dilution of their market value without no compensation. This may improve the chances of survival of the consequences. It is technically possible that if GM were not under the bank supervision and government control that could sell all his possessions, including the name GM, for a dollar to a new holding company or a company, leaving the old company as "ex Corporation general manager of bankruptcy debt. In such cases, creditors and shareholders would all be out of luck, but the first must be maintained indefinitely to prevent any run as a liability to former executives. In reality, those who are responsible on how you want to go and what to do to save what they consider useful for society. In total, GM spin off Saturn as it is now clean again and is looking for manufacturing resources to meet so that can not be distributed equally. They can do this with other brands. From what I understand, the objectives will focus on higher volume and higher margin products. Things like Saturn cars do not need as many spare parts and services, and therefore do not sell the volume of cars of other brands. Moreover, Pontiac a premium brand that has a larger margin and rest a little bigger / obligation to fix due to more expensive technology to use. As such, the former general manager will remain more or less as is and simply reorg under supervision to help to reduce labor and other fixed costs of the authority to break the agreements that limit how to downsize. The company or companies that spin can be purchased or may to be their own entities, but are likely to be competitors and private (no stock) for some time.
Interview with Ralph Nader – Bloomberg
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