San Jose Bankruptcy Attorney Speaks About GM Bankruptcy
San Jose Bankruptcy Attorney Speaks About GM Bankruptcy
Just a few months ago, Chrysler filed for Chapter 11 Bankruptcy. On Monday, June 1, 2009, General Motors (GM) followed suit. From a historical perspective, GM has been a carmaker for about 100 years and was the largest carmaker for 77 years (until last year) The stark picture today has GM with $172.8 billion in debt with only $82.3 billion in assets. The US government has already “loaned” GM about $50 billion dollars which will be mostly converted into equity into the new company that GM will become.
Under the US Bankruptcy protection, GM plans to do many of the initiatives that were always recommended but impossible due to contracts, laws, and shear audacity of the plans because the other options (if the actions were not taken) would be to liquidate the entire company. Some of the actions to be taken within the next 60-90 will be the sale of unprofitable divisions like Saturn and Hummer. One of GM’s idle plants will be retooled to make smaller and more fuel efficient cars to meet the surge in demand for a greener lifestyle. Other countries are moving forward to aid GM’s foreign divisions like Saab and Opel. These actions normally would have rocked the company headlines and, if the stock reacted negatively, could have lead to proxy fights or corporative executive terminations that may have killed the initiative.
It is unclear how the new GM will do but Bankruptcy gives GM the chance to find out. While not every business needs to be as drastic as GM, even small business owners may discover that Chapter 11 Bankruptcy can provide them with the breathing space to implement the deepest most necessary changes to make their business profitable.
If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
