1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Martin Whitman: Chapter 11 would be the easiest way for General Motors

March 07, 2006 | About:

Martin Whitman bought into General Motors Senior Unsecureds during the last quarter. He discussed the possible reorganization of GM: "It seems odds on that General Motors (NYSE:GM) has to reorganize if it is to solve its problems with burdensome legacy costs - pensions and health care; and also rationalize its wage, hour and working condition contracts with its principal union. There are two ways a distressed company can reorganize, i.e., restructure its obligations - voluntary exchanges, or Chapter 11 of the Bankruptcy Code. Though not without business risks a Chapter 11 case probably would be the easiest way for General Motors to solve its legacy cost and labor cost problems."


Rating: 3.5/5 (2 votes)


Please leave your comment:

GuruFocus has detected 3 Warning Signs with General Motors Co $GM.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners

Stephen NeumeierPiotroski 79 pb 1.3
kw1123Non_S&P Buy
kw1123S&P Buy
dpostelBook Appreciation
nmccutcheonMID CAP
nmccutcheonMid-cap value
Marty Fletcher10% ROE ROC 12 PE
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)