Tuesday, May 26, 2009

Government To Provide "Massive" New Capital To GM

WSJ reports that the UAW has said US taxpayers will provide additional "massive" bail out funding to GM. Nothing like layering another $20-30 billion in DIP funding and really destroying any bondholder recovery claims. As for the surging common stock action - takes a really smart man to explain that one.

The question arises who will Rattner pick out of the hat for the role of Good GM's stalking horse bidder, now that Chrysler is the template for automotive bankruptcies:

Fiat - already taken
Volkswagen/Porsche - hm, many self-inflicted problems there
Daewoo/Hyundai - not sure how the UAW will feel working for Korean concerns. Also, those North Korean nukes may be a bit of a question mark here
Mercedes - hah
TATA - See Hyundai, replace Korea with India
Ford - possibly, not probably, but possibly
Nissian/Renault - very possibly; the company was very close to a merger in the Kerkorian days, they are most familiar with the operations. Nothing like Nissan getting some U.S. taxpayer backstop funding after lobbing a couple billion to obtain the T800 chassis trademark and a few other auto parts. Sphere: Related Content
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