Category Archives: bankruptcy

Ecuador Craziness Datapoint of the Day

Today is clearly "crazy things people try to do while in default on their debt" day. First Friendfinder Networks tries to IPO, and now Ecuador is trying to borrow more money: Ecuador is seeking $2.6 billion in credits from regional … Continue reading

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Broken Glass

Is Waterford Wedgwood luxury, or "masstige"? Either way, it’s bust. Its $625 million in debt is essentially worthless, it’s been losing money before interest payments for a couple of years now, and its prospects, as we enter another grim year … Continue reading

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What Does GMAC’s Bond-Exchange Failure Mean for Detroit?

The GMAC bond-exchange results are out, and the screws that GMAC applied on December 10 — tender your bonds or we won’t become a bank or get TARP funds — seem to have had some effect, with the percentage of … Continue reading

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This is Not Good

The WSJ reports that talks to save the automakers have broken down in the Senate, and that there will be no bailout. Once again, Congressional Republicans have killed an intiative backed by both the White House and the Democrats — … Continue reading

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The GMAC Game of Chicken

The NYT does a good job today of explaining what’s going on at GMAC, although it doesn’t quantify the haircut that the company is asking bondholders to accept; my commenters put it in the 10% range, which seems roughly right. … Continue reading

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How Can GM Bondholders be Bailed In?

Is a bankruptcy for GM not only an option, now, but a necessity? At least one of Bloomberg’s interviewees thinks so: The Democrats’ goal of preserving a U.S. auto industry is not doable without a bankruptcy, said Lynn LoPucki, who … Continue reading

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How a Bankrupt GM Should Merge With Chrysler

Yesterday I sketched out a possible financial plan for how GM might be restructured within bankruptcy. Today, Andrew Ross Sorkin provides the other side of the coin — the operational side of things. Which, in his plan, includes a merger … Continue reading

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GM: An Alternative to Bankruptcy

Antony Currie says that it’s possible to structure a GM bailout so that it behaves like a bankruptcy without being called a bankruptcy: If an official bankruptcy label is really too scary, another template already exists: the government bailout of … Continue reading

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Bailout vs Bankruptcy, Obama Edition

Barack Obama addressed the GM situation on 60 Minutes last night: Mr. Obama: My hope is that over the course of the next week, between the White House and Congress, the discussions are shaped around providing assistance but making sure … Continue reading

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GM: The Bailout vs Bankruptcy Meme

There’s a bailout vs bankruptcy meme going around with regard to GM — a choice which makes me want to tick "none of the above". I’ve seen it in dozens of places of late, but since it comes with the … Continue reading

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