Auditors warn that GM may be finished
http://blogs.usatoday.com/ondeadline/2009/03/auditors-warn-t.html
Document: The Auditors Filing To the SEC
http://online.wsj.com/public/resources/documents/filing-GM10090305.pdf
Some key points that should be known from the SEC filing in case anyone doesn't feel like reading through the entire report.
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"The success of our Viability Plan and our ability to continue as a going concern depends on our compliance with the terms of the UST Loan Agreement,
and on the availability of additional financing from the United States and certain foreign governments."
"Under the terms of the UST Loan Agreement,
unless we receive certification under the UST Loan Agreement that we have complied with the requirements of the agreements, the maturity of the UST Loan,
which totals $13.4 billion at February 28, 2009, will accelerate and become due and payable.
If the maturity of the loans under the UST Loan Facility is accelerated, we do not currently have means to repay or refinance the amounts that would be due
and payable. If we failed to repay the amounts due under the agreement, an event of default would occur, which would permit the UST to exercise its remedies
under the agreement, including foreclosing on the collateral pledged to secure our obligations under the agreement. These circumstances would trigger events of
defaults in certain of our other significant agreements, potentially requiring us to seek relief through a filing under the U.S. Bankruptcy Code."
"We have also proposed the authorization of additional loans from the U.S. government, and we hope to receive loans of up to $7.7 billion or more under
Section 136 of EISA, which, combined with our indebtedness under the UST Loan Facility, would represent an aggregate of approximately $30.0 billion in
borrowings from the U.S. government by 2011. We are also in the process of requesting temporary loan support from certain foreign governments, including
Canada, Germany, the United Kingdom, Sweden and Thailand, and have assumed for purposes of our Viability Plan that we will receive up to approximately
$6.0 billion in financing from foreign governments to fund operating requirements, plus amounts to satisfy certain legal obligations."
"If we are not able to obtain adequate financing from the U.S. government or other sources or to execute our Viability Plan or if our Viability Plan does
not result in an entity capable of sustaining itself over the long-term, or if we are unable to restructure our Series D convertible debentures prior to June 1,
2009, we could potentially be required to seek relief through a filing under the U.S. Bankruptcy Code, either through a prepackaged plan of reorganization
or under an alternative plan, which could include liquidation."
What happened to bankruptcy not being an option. The Gov't blew it by BAILING THEM OUT. Had they gone into bankruptcy, things would have been fixed a lot quicker than by bailing em out.
I'm begining to believe it's going to be a very very long 4 years. Government needs to stay out of private business.
I'm not political now, and I really wasn't political back in 2000. But, I think most of the democrats were saying the same thing for the last 8 years. :)