General Motors may see a loss of $918 million should a bankruptcy judge rule certain hedge funds were favored over other investors during the automaker's 2009 restructuring. A trust representing a number of unsecured creditors has sued to undo a lock-up agreement that saw hedge funds receive around $367 million while other creditors were left to recover a slim fraction of their original investments. The creditors claim the agreement was unfair and that it took place after after the bankruptcy fi
American Suzuki Motor Corporation (ASMC), which declared bankruptcy in early November, has been approved by the courts for up to $100 million in debtor-in-possession financing to enable it to shutter its US car business. ASMC had received a $45 million loan from the Japanese parent company, Suzuki Motor Corporation (SMC), last month in order to make repayment deals with its franchise dealers. At the same time, ASMC was awaiting final court approval of this larger loan.
A court filing by the legal firm Jones Day estimates that 38,500 Chrysler workers will lose their jobs if the bankrupt automaker fails to quickly form an alliance with Fiat SpA and is forced to liquidate. In addition, if the deal with Fiat is rejected Chrysler LLC employees will lose $9.8 billion in benefits and $2 billion in pension payments, according to the legal team.
This past September, Trust Co. LTD – the parent company of GReddy Performance Products in the U.S. – declared the Japanese equivalent of Chapter 11. According to a release from the aftermarket parts supplier, Trust has successfully completed the reorganization process (known in Japan as Minji-Saisei-Hou) and is hoping to be completely back on its feet within the next few months. During the reorganization, both Trust and GReddy have maintained its workforce here and abroad, developed
Every time GM turns a corner it seems to come face to face with another obstacle. The latest setback concerns supplier Cadence, LLC, which provides interior parts for the 2010 Camaro. Cadence declared bankruptcy in August, and is now in liquidation proceedings. To GM's chagrin, joining Cadence in its descent into commercial tar pits are the specialized machines that GM needs to make parts for the Camaro.
In recent weeks, the idea that one or all three of Detroit's automakers could end up filing for chapter 11 bankruptcy protection in the coming weeks or months has gained a lot of momentum. In theory, the advantage of chapter 11 is that it provides protection from creditors while the company is reorganized in a way that it can survive. The company is allowed to continue operating in this mode, thus avoiding a complete shutdown. A number of major airlines have done this and managed to keep operati
After Merrill Lynch hinted bankruptcy concerns yesterday, and other Wall Street analysts spread additional gloom, shares of General Motors dropped $1.77 to close at $9.98 -- GM's lowest close in more than 50 years. While GM stock on Tuesday showed a bit of promise on the news that sales only dropped 18.2 percent in June (yes, it was supposed to be worse), nothing could slow the fall on Wednesday. Unfortunately for GM, the light at the end of the tunnel seems a far way off. Sales are plummeting,
The word is out that General Motors' Chief Financial Officer Fritz Henderson told a meeting of investment analysts this week that he expects a deal with Delphi and the United Auto Workers within 30 to 60 days - a prediction that left some analysts shaking their heads, believing that Henderson is being overly optimistic given the complexity of the situation.
Bankrupt auto parts manufacturer Delphi and the unions representing its 33,0000 workers had their first day in court Tuesday, as the U.S. Bankruptcy Court opened its hearing on Delphi's request for permission to terminate its labor contracts with the unions.