Unstructured Finance

Hush hush Hummer sale

June 2, 2009

They can’t name the price or the buyer, but a day after heading into bankruptcy General Motors was finally able to say it was selling what is arguably its biggest albatross: Hummer.OK, “sell” might be too strong a word, since all they have is a memorandum of understanding. But they said the deal should close by the third quarter, save more than 3,000 U.S. jobs, and see the Hummer get a big investment infusion.In early April, three bidders were in the running for Hummer, and none were automakers. While private equity was said to be among the interested parties, it’s probably a safe bet that Cerberus – the owner of bankrupt Chrysler – is not among them.With the price of gas rising again, and the Hummer the poster-car for the age of excess, the buyer may want to stay anonymous for some time. Maybe as long as it takes to design an environmentally friendly engine for the off-road behemoth. One powered by hamsters would have the added benefit of a catchy new name.

GM: genetic modification?

June 1, 2009

So, it has come to pass. General Motors, ultimate symbol of the world’s greatest car-owing democracy, is to end up in state hands. Henry Ford might have said history is bunk but it is still humbling for all Americans to see Ford’s great rival rescued by the Government, wiping out most bondholders and shareholders. What happens next?

No deal on Opel as GM needs more cash – again

May 28, 2009

opel1What’s surprising: Talks for General Motors Corp’s Opel failed to yield a deal.

Ball bounces in GM bondholders’ bankruptcy-bound court

May 26, 2009

Holders of $27 billion of General Motors‘ unsecured debt have until midnight tonight to decide whether to exchange it for equity, and the chance that the once mighty auto giant will get the 90 percent participation it says it needs to avoid bankruptcy protection is looking just as remote as it did a week ago.

Ford goes into overdrive

May 13, 2009

AUTOS-FORD/With GM‘s share price heading toward $1 and Chrysler close to consummating its shot-gun wedding with Fiat, Ford‘s raising $1.4 billion through the sale of 300 million shares puts some serious distance between it and the competition.

GM bondholders haggle

April 30, 2009

GM/RESTRUCTURINGUnder the bondholders’ deal, they would swap a 51-percent stake in a restructured company for $27 billion in debt, a person with knowledge of the plan tells Reuters Detroit Bureau Chief Kevin Krolicki. The deal would give the United Auto Workers union 41-percent in a new General Motors while the U.S. government would not receive an equity stake, according to the person who asked not to be named because the offer had not yet been submitted.

Chrysler bankruptcy looms despite deal

April 29, 2009

USA/Chrysler’s biggest lenders and the U.S. government reached a breakthrough framework deal to cut the automaker’s debt by $6.9 billion, but officials say bankruptcy is still a strong possibility with the Obama administration’s Thursday deadline for a comprehensive rescue plan just hours away.

Unions deal as Chrysler deadline looms

April 27, 2009

CHRYSLER/FIATWith just days left to complete deals to slash labor and debt costs or face bankruptcy, Chrysler has won union concessions aimed at paving the way for a deal with Fiat and the U.S. government to save the privately held automaker. The UAW said that deal must be ratified by Wednesday and meets conditions mandated by the Treasury as part of an emergency loan program for Chrysler. Treasury’s deadline is Thursday.

Good news for some: bankruptcies head to record year

April 17, 2009

mall2This week’s mega-bankruptcies by mall operator General Growth Properties and Canadian newsprint company AbitibiBowater, have put 2009 well on its way to being the worst ever for filings, according to a report released Thursday by research firm BankruptcyData.com.

When life gives you lemons, make limoncello

April 17, 2009

FRANCEIt may be a raucous bit of speculation gone awry, but reports in Italy that Fiat is angling to pick up General Motors’ Opel operations in Europe if the Chrysler deal falls through are too good to dismiss out of hand.