Detroit is drowning in the saliva of drooling bankruptcy lawyers. Both papers in Detroit today had some very
scary headlines that included ‘GM’ and ‘bankruptcy’ in the same breath — it’s one thing for Autoblog readers to predict
these things, but to actually see it in print in the two local papers is something else entirely.
After announcing that it would be restating its
earnings, the company’s stock hit a 13-year low, and
some analysts on Wall Street are talking a 40 percent likelihood that GM will file within the next two years. The
analysts also say it’s likely that GM will be bought by a “corporate raider” like Kirk
Kerkorian before it’s forced into bankruptcy — at a time where the entire sum of GM’s stock is at $13.5
billion, Kerkorian could buy GM outright, sell off GMAC for $10 to $15 million, force GM into bankruptcy and walk away
lots, lots richer than he was before. And that’s saying a lot. GM spokespeople claim that the analysts throwing
around the b-word don’t represent the predominant opinion on Wall Street, but that remains to be seen.
Detroit Free Press