Porsche's merger with Volkswagen is a step back from Porsche taking outright control of VW, something the automaker has been fighting various German entities to do for over a year. The willingness to co-exist is being put down to Porsche's debt levels, which can't be easy to refinance when banks are holding on to their money like a toddler guarding his last chocolate Easter bunny.
GM was able to avoid bankruptcy court when it received billions in government loans, but Deutsche Bank automotive analyst Rod Lache feels GM will have a tough time getting concessions from bondholders, making bankruptcy far move likely. GM's deal with the government includes a stipulation that demands the General swaps a great deal of its $36 billion in outstanding debt for equity. Failure to do so means that GM will have to return the $13.4 billion given by the government.
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