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GM - The Coercion Continues

|Includes: General Motors Company (GM)

 

July 10 or bust:

A senior member of President Barack Obama's auto task force testified Wednesday that the U.S. government will not continue to fund General Motors Corp.'s operations if the automaker doesn't get approval to sell its assets to a new company within the next 10 days.  “We have no intention to further fund this company if the sale order is not entered by July 10,” Harry Wilson, one of the Treasury Department officials overseeing GM's restructuring, said while being cross-examined by an attorney for a group of GM bondholders opposing the sale.

In other words, do what we want now or liquidate.  Now this is the way bankruptcy is supposed to work.  The DIP lender leans on the estate to circumvent the law and to force their "plan" on everyone involved.  This really is change.

 

Disclosure:  long GM bonds