Judge approves liquidation of Old Carco; U.S., Canadian governments to receive a

[SVT666]

Judge approves liquidation of Old Carco; U.S., Canadian governments to receive almost nothing
04/21/2010, 2:07 PM
BY DREW JOHNSON

   
After nearly a year under bankruptcy protection, U.S. Bankruptcy Judge Arthur Gonzalez has ruled that Old Carco LLC ? the bankrupt entity of Chrysler Group ? can move forward with Chapter 11 liquidation. The decision almost guarantees that the U.S. will recoup little ? if any ? of its Chrysler bailout loans.

The ruling was fittingly handed down on Tuesday ? the same day General Motors fully repaid U.S. and Canadian bailout loans. Old Carco?s wind-down process will become effective of April 30.

Per the terms of the wind-down plan, creditors with ?other secured claims? are expected to receive the full $20.6 million they are owed. Unsecured creditors will receive any funds gained from a pending lawsuit against Daimler, but that total has been labeled as ?undetermined.?

The U.S. government, meanwhile, is expected to recoup very little of its $5 billion investment in the Michigan automaker. U.S. and Canadian will only receive money from liquidated assets, such as the sale of employee cars.

In all, U.S. taxpayers are expected to lose about $30.4 billion on the bailouts of Chrysler and General Motors.

[Jon?]

General Motors has paid off its loans to the U.S. and Canadian governments, the company said this morning.

The loans had outstanding balances of about $4.7 billion to the United States and $1.1 billion to Canada after accounting for exchange rates.

"I am very pleased to announce that, as of today, General Motors has repaid, in full and with interest, the loans made last July by the U.S. Treasury and Export Development Canada," GM Chief Executive Ed Whitacre said today.
GM received about $50 billion from the U.S. government in exchange for $2 billion in preferred stock and 61% of the company's common stock. Today's announcement puts GM a step closer to an initial public offering -- which is when the government can sell its stake and recoup its investment.

The Canadian and Ontario governments still own an 11.7% stake in GM, the United Auto Workers health care trust owns 17.5% of the company, and the old GM, now known as Motors Liquidation (MTLQQ), has a 10% stake.

GM posted a net loss of $4.3 billion for the period from its emergence from bankruptcy in July through the end of 2009. 

Whitacre also announced the company's plans to invest $257 million into its Detroit and Kansas City plants to build the next-generation Chevrolet Malibu. He also said that its electric vehicle, the Chevrolet Volt, would be released in October, two months ahead of schedule. 

Whitacre spoke at a plant in Fairfax, Kan., where GM builds the Malibu and the Buick LaCrosse sedans.

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1745206&_blg=1,1745206

[GoCougs]

Actually, this is a good thing; it'd be better if people were actually paying attention.

Next up is that the US needs the failure of GM, but that would likely result in the full nationalization, and the worse of all possible scenarios.

[Nethead]

General Motors has paid off its loans to the U.S. and Canadian governments, the company said this morning.

The loans had outstanding balances of about $4.7 billion to the United States and $1.1 billion to Canada after accounting for exchange rates.

"I am very pleased to announce that, as of today, General Motors has repaid, in full and with interest, the loans made last July by the U.S. Treasury and Export Development Canada," GM Chief Executive Ed Whitacre said today.
GM received about $50 billion from the U.S. government in exchange for $2 billion in preferred stock and 61% of the company's common stock. Today's announcement puts GM a step closer to an initial public offering -- which is when the government can sell its stake and recoup its investment.

The Canadian and Ontario governments still own an 11.7% stake in GM, the United Auto Workers health care trust owns 17.5% of the company, and the old GM, now known as Motors Liquidation (MTLQQ), has a 10% stake.

GM posted a net loss of $4.3 billion for the period from its emergence from bankruptcy in July through the end of 2009.  

Whitacre also announced the company's plans to invest $257 million into its Detroit and Kansas City plants to build the next-generation Chevrolet Malibu. He also said that its electric vehicle, the Chevrolet Volt, would be released in October, two months ahead of schedule.  

Whitacre spoke at a plant in Fairfax, Kan., where GM builds the Malibu and the Buick LaCrosse sedans.

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1745206&_blg=1,1745206

Good luck getting anything even remotely close to $50 billion for that preferred and common stock
Even in the US it will be hard to find that many morons...