GM Bankruptcy Plan Approved

By Robert Weiss

Late Sunday night, General Motors won permission from a federal bankruptcy judge, Robert Gerber, to sell its assets to a new government-backed company in order to complete a restructuring plan backed by both GM and the Obama administration. All of this in hopes of reviving the ailing auto industry. It should be no surprise that even after a surge of nearly $50 billion to this restructuring plan, the people who will suffer the most are the consumers once again. Because this is a non-traditional bankruptcy structuring, GM’s desirable assets, such as Buick, Cadillac, Chevrolet and other GMC brands, would be sold to a "new," leaner GM. What becomes of their other profit-less assets and high value liabilities? They will be left behind in bankruptcy for hundreds of creditors to fight over. [more...]