General Motors is close to bankruptcy now.

Bondholders have refused to swap the debt for equity.

General Motors may file for Chapter 11 bankruptcy protection as soon as this weekend.

GM says bondholder offer fails; bankruptcy likely.

A chapter 11 filing by General Motors may not affect stock markets in a big way, but it surely will be big news in US and will dent consumer confidence there.

If GM goes bankrupt, it will be largest U.S. industrial bankruptcy ever.

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What it means "Chapter 11 bankruptcy protection"????

What kind of the bankruptcy this???

When a business is unable to repay its debt, it can file for Chapter 11 bankruptcy.

Under this arrangement, the company continues to function, but under supervision of court.

The company has to try and repay its debt from sale of assets and profits (if any).

When a company is functioning under Chapter 11, the creditors cannot attempt to recover debt and no court action can be taken against the company for debt recovery.

If General Motors files for Chapter 11, it will be as good as dead.

Who would want to buy a car from a company that is close to bankruptcy?

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this will be very bad news for all gm dealers in India.....

will all the dealerships be eventually closed as no one will buy gm cars now..

all hope is still not lost.

some analysts believe that the US government will nationalize General Motors to save jobs.

the company will continue to function, but US government may lose another $50 - $100 billion.

if General Motors collapses, the Indian operations may be taken over by some other company, but I am not sure for how long such an arrangment can continue.

once a company goes down, forget about new cars, people are even reluctant to buy secondhand cars at throwaway prices.

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Remember DAEWOO CIELO & MATIZ in INDIA?

Nobody wants them, CIELO Sells at 20,000 rs in SCRAP market nowdays!

General Motors has filed for Chapter 11 bankruptcy protection.

if the restructuring goes through as expected, the new ownership structure will be........

US government will get 60% of the new company.
Canadian government will get 12.5%.
United Auto Workers will get 17.5%.
Unsecured bond holders will get 10%..

the common stock is wiped out and delisted....it's value is 0.

people were actually buying it on Friday...the last price was $0.75....

9 plants will be closed permanently and 3 idled.

34% of the hourly-workers (21000) will lose their jobs.

Source.

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On a lighter note....

General Motors will now be renamed......Government Motors....

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Any guess on what would be the effect of it tomorrow in Indian markets. Is it better to stay away from auto suppliers for some time ?

no major effect on any of the suppliers....at least that is what the suppliers claim.

GM bankruptcy is not an unexpected event and thus stock prices already have discounted the event.

production is not going to stop completely at GM.

only some of the plants are going to be closed down.

it may actually turn out to be a positive for many Indian companies.

the new GM would have to cut costs and this may mean more imports from cheaper locations like India.

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