Marika Posted May 12, 2009 Report Share Posted May 12, 2009 GM Executives Sell Shares as Bankruptcy Becomes ‘More Probable’ By Katie Merx and Bill Koenig May 11 (Bloomberg) -- General Motors Corp. reported that six executives sold shares in the company, as the largest U.S. automaker said it’s more probable than previously thought that it will need to file for bankruptcy. Vice Chairman Bob Lutz and North America President Troy Clarke sold all their holdings in the Detroit-based company, according to regulatory filings today. The sales were in a window when such transactions are allowed, following the company’s quarterly earnings report on May 7, said Julie Gibson, a spokeswoman. The period may be the last for the executives before the government-imposed June 1 deadline for GM to restructure or file for bankruptcy, she said. Chief Executive Officer Fritz Henderson made the comment about the probability of bankruptcy on a conference call today. He declined to specify its likelihood. Henderson also had said bankruptcy was “more probable” on March 30, after former CEO Rick Wagoner was ousted by the Obama administration, and made the same point in a conference call two weeks ago. “It should be clear now where they’re headed,” said Mirko Mikelic, who helps manage $19 billion, not including GM shares, at Fifth Third Asset Management in Grand Rapids, Michigan. “There are too many competing interests. They’re definitely going there. Everyone is positioning for bankruptcy now.” GM fell 17 cents, or 11 percent, to $1.44 at 4:15 p.m. in New York Stock Exchange composite trading. They lost 93 percent of their value in the past 12 months. Lutz sold 81,360 GM shares, at $1.61 each, according to a filing. Clarke sold 21,380 at $1.45 a share. Others selling stock were Vice Chairman Thomas Stephens and Group Vice Presidents Gary Cowger, Carl-Peter Forster and Ralph Szygenda, according to the filings. Bond Exchange GM isn’t planning to modify terms of a bond exchange, Henderson said. GM’s plan envisions that the U.S. would control at least 50 percent of 60 billion shares in a restructured company, and a union-run health-care fund would get as much as 39 percent. Unsecured bondholders would get 10 percent and existing shareholders would keep 1 percent, GM said. Bondholders would receive 225 shares in the new automaker for each $1,000 in principal. GM would then execute a 1-for-100 reverse split of the stock. Bondholders countered that proposal with a plan calling for GM to give them 58 percent of the equity in the reorganized company. Henderson said last week that the U.S. Treasury has indicated it “would not be supportive of shareholding in excess of 10 percent” for the bondholders. Without support from 90 percent of the bondholders by May 26, GM plans to file for bankruptcy by June 1. GM hopes to avoid a bankruptcy, Chief Financial Officer Ray Young said last week, adding that if one is needed GM wants to go in and out of court quickly. To contact the reporters on this story: Katie Merx in Southfield, Michigan, at kmerx@bloomberg.net; Bill Koenig in Southfield, Michigan at wkoenig@bloomberg.net; Last Updated: May 11, 2009 18:15 EDT If you really want to make people safe drivers again then simply remove all the safety features from cars. No more seat belts, ABS brakes, traction control, air bags or stability control. No more anything. You'll see how quickly people will slow down and once again learn to drive like "normal" humans. Link to comment Share on other sites More sharing options...
WarrenJ Posted May 12, 2009 Report Share Posted May 12, 2009 Vice Chairman Bob Lutz and North America President Troy Clarke sold all their holdings in the Detroit-based company, according to regulatory filings today. Gee, could ya just give me a moment to get over the surprise? I was a year and a half ahead of them. Shoulda been two and a half. Jerks. Sorry Marika, I love ya; no bad stuff on you. Just GM. Bastards. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
PAUL T Posted May 18, 2009 Report Share Posted May 18, 2009 You would have thought they would have enough faith that by holding on to the stock they could do better when the company gets back on its feet. Kinda tells you where their faith is. Link to comment Share on other sites More sharing options...
BodybyFisher Posted May 18, 2009 Report Share Posted May 18, 2009 I was under the impression that if they go bankrupt their shares would be worthless, I also understand they are permitted to unload this stock at this time, who of you would rather sell 81000 shares at $1.61 per share to net $130,410, verses 81000 shares at $0.00 when the company is bankrupt? Consider that as of 5/19/08 GM stock was worth $21.37 per share, at that point 81000 shares was worth $1,731,000, dont you think he has SUFFERED enough?, or do you want to GRIND HIM INTO THE GROUND? He lost $1,600,590 in ONE YEAR, lets give him a break Keep in mind that FOREIGN car manufacturers are building cars in this country with NON UNION labor, stay FOCUSED Pre-1995 - DTC codes OBD1 >> 1996 and newer - DTC codes OBD2 >> https://www.obd-codes.com/trouble_codes/gm/obd_codes.htm How to check for codes Caddyinfo How To Technical Archive >> http://www.caddyinfo.com/wordpress/cadillac-how-to-faq/ Cadillac History & Specifications Year by Year http://www.motorera.com/cadillac/index.htm Link to comment Share on other sites More sharing options...
WarrenJ Posted May 18, 2009 Report Share Posted May 18, 2009 Consider that as of 5/19/08 GM stock was worth $21.37 per share, at that point 81000 shares was worth $1,731,000, dont you think he has SUFFERED enough?, or do you want to GRIND HIM INTO THE GROUND? He lost $1,600,590 in ONE YEAR, lets give him a break NO! NO! NO! Poor boy, he lost $1.6M. I'd like to give him some breaks. Both legs. GM lost $30,000,000 per day for nearly 10 years. Do you expect for even an instant that Bob was unaware? Ya think he didn't take note that GM was in debt to the tune of $90B? Bob hobbled shareholders as well as ordinary citizens who didn't own a single share. And he knew what he was doing. And now shareholders and taxpayers are in debt to an even larger number. $105B+ . . .? Or more. You want sympathy for Bob? You'll find sympathy in the dictionary somewhere between s**t and syphilis. You won't find it from me. Regards, Warren There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
BodybyFisher Posted May 18, 2009 Report Share Posted May 18, 2009 And you think that these problems were PREVENTABLE and STOPPABLE by ANYONE? You dont think that they tried? I think the bleeding was too bad and that they COULD NOT compete, even if they tried and they did try. This is a political failure, allowing foreign products to destroy domestic products on an uneven playing field. Pre-1995 - DTC codes OBD1 >> 1996 and newer - DTC codes OBD2 >> https://www.obd-codes.com/trouble_codes/gm/obd_codes.htm How to check for codes Caddyinfo How To Technical Archive >> http://www.caddyinfo.com/wordpress/cadillac-how-to-faq/ Cadillac History & Specifications Year by Year http://www.motorera.com/cadillac/index.htm Link to comment Share on other sites More sharing options...
WarrenJ Posted May 18, 2009 Report Share Posted May 18, 2009 And you think that these problems were PREVENTABLE and STOPPABLE by ANYONE? You dont think that they tried? I think the bleeding was too bad and that they COULD NOT compete, even if they tried and they did try. This is a political failure, allowing foreign products to destroy foreign products on an uneven playing field. Up until recently politics had little to do with it. The landscape has now changed. A sitting president can now replace corporate executives without argument. That president can now annul contract law. He can tell secured creditors their legal contracts are null/void. He can place a generously contributive union at the head of the line and turn over 55% of a company to that same union (any conflict of interest here?). No matter that the law has, for decades, spoken otherwise. These problems WERE preventable AND stoppable. But no, I don't think anyone tried. It all harks back to the repeal of the GLASS-STEAGALL Act in 1999. Its repeal was signed by Bill Clinton, but I'm not certain he had any idea what he'd done. But he darn did it! CtitBank wanted to merge with Travelers Insurance, but the Glass-Steagall Act prevented commercial savings banks from also being investment banks. Some $160M of lobbyist money was spent in the halls of Congress and guess what? Yup, Glass-Steagall was repealed. Gee, who do you suppose spent that $160M? Ya think maybe it was CitiBank (now CitiGroup)? In the end it all comes down to Congress; those S.O.B.s sucked up $160M of lobbyist money and sold you and I down the toilet. Please pay particular attention to Barney Frank and Chris Dodd. They deserve your animus. Regards, Warren There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
Ranger Posted May 19, 2009 Report Share Posted May 19, 2009 BBf is correct. After they file for Ch11 the stock becomes wallpaper at best. Link to comment Share on other sites More sharing options...
WarrenJ Posted May 21, 2009 Report Share Posted May 21, 2009 GM's latest plan seems to be selling back to the U.S. Government (that would be thee and me) the profitable parts of GM and segregating the remaining parts. Oh yeah, I forgot to mention: thee and me will forgive $15B of GM's debt. Anyone remember the part about our "investment" in GM paying back the lowly taxpayer with interest? At a profit? Some short memories out there, huh? Regards, Warren P.S. To paraphrase Thomas Jefferson, "When the people fear the government, that's tyranny; when the government fears the people, that's liberty." Take your pick and choose wisely. Sometimes you don't get a second bite at the apple. Folk in Venezuela could tell you a bit about that. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
WarrenJ Posted May 29, 2009 Report Share Posted May 29, 2009 GM's latest plan seems to be selling back to the U.S. Government (that would be thee and me) the profitable parts of GM and segregating the remaining parts. Oh yeah, I forgot to mention: thee and me will forgive $15B of GM's debt. Anyone remember the part about our "investment" in GM paying back the lowly taxpayer with interest? At a profit? Some short memories out there, huh? Regards, Warren P.S. To paraphrase Thomas Jefferson, "When the people fear the government, that's tyranny; when the government fears the people, that's liberty." Take your pick and choose wisely. Sometimes you don't get a second bite at the apple. Folk in Venezuela could tell you a bit about that. OBAMA! has offered you a first bite. It is now your choice. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
Ranger Posted May 29, 2009 Report Share Posted May 29, 2009 GM's latest plan seems to be selling back to the U.S. Government (that would be thee and me) the profitable parts of GM and segregating the remaining parts. Oh yeah, I forgot to mention: thee and me will forgive $15B of GM's debt. Anyone remember the part about our "investment" in GM paying back the lowly taxpayer with interest? At a profit? Some short memories out there, huh? Regards, Warren P.S. To paraphrase Thomas Jefferson, "When the people fear the government, that's tyranny; when the government fears the people, that's liberty." Take your pick and choose wisely. Sometimes you don't get a second bite at the apple. Folk in Venezuela could tell you a bit about that. OBAMA! has offered you a first bite. It is now your choice. Yes I remember that. Funny how the slobbering press does not seem to remember it either. Link to comment Share on other sites More sharing options...
WarrenJ Posted June 2, 2009 Report Share Posted June 2, 2009 Yes I remember that. Funny how the slobbering press does not seem to remember it either. Rest assured, the press doesn't have a memory problem; rather, they have an agenda. But you KNEW that . . . didn't you? Regards, Warren There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
Ranger Posted June 2, 2009 Report Share Posted June 2, 2009 Yes I remember that. Funny how the slobbering press does not seem to remember it either. Rest assured, the press doesn't have a memory problem; rather, they have an agenda. But you KNEW that . . . didn't you? Regards, Warren Yes I do Warren. Probably should have phrased that differently. Perhaps I should have said funny how the slobbering press CHOOSES not to remember it Link to comment Share on other sites More sharing options...
WarrenJ Posted June 5, 2009 Report Share Posted June 5, 2009 Yes I remember that. Funny how the slobbering press does not seem to remember it either. Rest assured, the press doesn't have a memory problem; rather, they have an agenda. But you KNEW that . . . didn't you? Regards, Warren Yes I do Warren. Probably should have phrased that differently. Perhaps I should have said funny how the slobbering press CHOOSES not to remember it THERE! I knew ya got it. Pass it on! Please. Regards, Warren There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
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