More On GM

Here's a link to a good post on the issues facing GM if a decision is made to go to bankruptcy court. Basically, with all of the claimants and parties involved it would be messy regardless of any desire to do a 'quick turnaround'.

Of note is the fact that bondholders (basically people that have loaned money to GM with the hope of seeing it returned with interest) stand to lose substantially. One approach to this is to convert the bond value to equity. In other words, a bondholder becomes a stockholder (and that's something they didn't want to do in the first place.)

Also the union has to look out for the interest of their workers and their benefits. Wages may be negotiable, hopefully work rules will be negotiable, but pension and medical benefits are likely to cause the most angst.

It won't be pretty or easy and the judge assigned the case should be on the top of their game.

We are a long way from being out of the woods.