Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

What would happen to GM stocks if GM declared bankruptcy?

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread		 This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
raccoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:32 PM
Original message
What would happen to GM stocks if GM declared bankruptcy?


Just curious, I don't own any.


Printer Friendly | Permalink |  | Top
Idealism Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:32 PM
Response to Original message
1. $0.00
How many would you like?
Printer Friendly | Permalink |  | Top
 
DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:33 PM
Response to Original message
2. The stock becomes worthless
Printer Friendly | Permalink |  | Top
 
DainBramaged Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:33 PM
Response to Reply #2
3. As do millions of jobs
Printer Friendly | Permalink |  | Top
 
AngryAmish Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:39 PM
Response to Reply #2
7. not necessarily so
But the car business is different.
Printer Friendly | Permalink |  | Top
 
monmouth Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:33 PM
Response to Original message
4. Would MSNBC be shut down????...n/t
Printer Friendly | Permalink |  | Top
 
AngryAmish Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:38 PM
Response to Original message
5. Might go up, might go down.
Why up? Under a Chapter 11 reorganization, the company can repudiate old contracts. So the bankruptcy judge can cut loose the pension plan, cut retiree medical and cut wages and benefits of workers. No strike is allowed - the UAW leaders could be jailed for contempt of court.

Why down? If they do a Chapter 7 liquidation, they would sell all the assets. They owe more than the assets so there would be no money to disburse to the shareholders.

Printer Friendly | Permalink |  | Top
 
Gothmog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 03:38 PM
Response to Original message
6. Absolute priority rule
If any creditor has their rights impaired without their consent, then all junior creditors or interest holders are wiped out. The whole point of any such bankruptcy would be to wipe out the rights of the unions and retirees and to reduce the amount owed to bondholders which means that the shareholders should get zip.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Tue Apr 30th 2024, 02:34 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC