General Motors could be facing liquidation if the automaker’s ‘good’ assets are not approved for sale by July 10th. The U.S. Treasury Department has the option to pull GM’s restructuring financing if a bankruptcy court fails to approve GM’s asset sale by July 10th.
President Obama originally set the July 10th deadline to ensure a speedy sale, but that date is now looming large as several parties are objecting to GM’s asset sale. Although unlikely – given the U.S. government has already pledged $50 billion to save General Motors – the Detroit-based automaker could be forced into liquidation if no deal is made.
GM spokeswoman Renee Rashid-Merem told The Detroit News that while it is possible for the Treasury to pull its funding, “logically there wouldn’t be strong motivation to stop funding given its investment in GM and the progress made to date.”
U.S. Bankruptcy Judge Robert Gerber has yet to rule on the asset sale – as testimonies are ongoing – but will have to give his verdict in the coming days. If approved, thousands of entities owed money by GM – including union retirees and victims of defective products – will be left behind with the ‘old’ GM in bankruptcy.



07/01, 2:20 PM
posted by:
A4
EVERYTHING MUST GO!
07/01, 2:22 PM
posted by:
idrinorbarsaku
I’ll take a suburban for 10k cash please!
07/01, 2:29 PM
posted by:
carstuff
idle talk. Lets just get it over with and get to business.
07/01, 2:30 PM
posted by:
Bankruptcy2009
I’ll give ya a $20 Spot for a New Cadillac CTS. Everything must go were slashing prices. You reading that NFMOGM! Liquidation is a bad thing for GM if it happens.
07/01, 3:04 PM
posted by:
yarddog82abn
Where is NFMOGM???????……………..
Ohooo…. that’s right he knows better, and i’ll take a ZR1 for $4.99…
07/01, 3:06 PM
posted by:
RaineMan
Gee… since my tax dollars are paying for this I think I’ll head on down and pick up my new Camaro now.
I would absolutely love to see this go into liquidation… though I doubt it will happen.
07/01, 3:07 PM
posted by:
orangecones
Guys, I doubt this will happen, as much as I really really want it to. The point is that the government has spent so much money and time on pulling GM out that they aren’t about to let this go, they might as well sink in another $50 billion (which GM will burn through in 50 days) in a last-ditch effort to revive the brand that should have been dead 10 years ago.
07/01, 3:35 PM
posted by:
Architect
I can’t believe anyone, particularly American, would actually post that they hope GM is liquidated. It would be outright ludicrous, and you know it…especially given the great product currently available and in the pipeline. Dumb comments notwithstanding…it would never happen politically.
07/01, 3:51 PM
posted by:
TornadoGTI
This would only happen if all other options had been exhausted. I could see a Ford, GM, and Chrysler merger before I see any of them liquidating and ceasing to do business. GM is too large and too powerful to have just go out of business. It would effect so many Americans lives that it would be devistating.
GM’s problems should have been addressed 5 or 10 years ago and we wouldnt be in this situation. This will change the way companies will do business forever.
CEO 1 – “Lets build a huge, world dominating company and if/when it fails, the government will save us. We can do whatever we want until then.”
This just sets a bad example for all the other companies that have to work to stay dominant in their industries.
07/01, 3:51 PM
posted by:
TornadoGTI
Your CommentI say good ridence…
07/01, 3:52 PM
posted by:
JakeK66
Government wants to get there money back eventually, and liquidating would assure them they never get much of anything back, It’s not going to happen. Period.
07/01, 4:06 PM
posted by:
johnnycanuck
I have a better chance of winning American Idol than this happening.
07/01, 4:38 PM
posted by:
Stix
It wouldn’t matter anyway, our tax dollars are still being wasted on bailing out these corrupt assholes. And even if they weren’t being bailed out, we would still be going through the same predicament.
07/01, 4:46 PM
posted by:
Stix
Also, I wanna find the asshole who coined the term “too big to fail” in the business world, so I could kick his ass, and throw it in a effing meat grinder.
07/01, 5:02 PM
posted by:
Impulsive
‘JOHNNY’, I have a better chance than you WITHOUT entering.
07/01, 5:07 PM
posted by:
Borat
Unfortunately liquidation will not happen. Unfortunately government does not want its (our) money back. This fiasco will cost us another 50-100 billion dollars before country will get fed up and stop tossing good money after bad. Current elected officials want nothing more or less then giving this corporation to UAW. Chrysler was a prelude and now comes the symphony. The redistribution of wealth goes on as planned.
07/01, 5:10 PM
posted by:
Dante_JoseCuervo
Hey, NMOFGM, where’d ya run off to? I was hoping to see a witty comment from you
07/01, 5:11 PM
posted by:
F50
I’ll trade in my ‘00 Honda Odyssey for a ZR1.
07/01, 5:11 PM
posted by:
mayer_ray_nagin
They can sell NMOFGM down in Bangkok for about 10 bucks.
07/01, 5:15 PM
posted by:
johnnycanuck
Borat, I like your analogy about the prelude and the sympathy. I would have thought more along the lines of foreplay and orgasm since it is one hell of a load they’re blowing.
07/01, 6:05 PM
posted by:
Borat
Johnny, I left the best part for you! Well done, partner.
07/01, 9:21 PM
posted by:
teahead
Treasonous bastards who wish for GM to fail.
07/01, 9:52 PM
posted by:
bswalks
Treasonous people that wish GM failed? What about the Govt handing out $50 B of unauthorized TARP money to a private company? That is real treason.
07/01, 11:55 PM
posted by:
DB9
^Funny:-)) Let’s forget about the auto biz for a sec and ask where ~700B (directly) and another 1000B+(indirectly), and growing I might add, went? Who authorized and under what oversight? Well? The amount of money that is being spent/created/borrowed overall makes what is being given to the auto sector the equivalent of a pimple on a flea’s azz;-)
If you are really that concerned look at the main problem not one of its side effects;-)
DB9;-)
07/02, 12:46 AM
posted by:
vortec4200
Yawn…must be still possible for my beater hot rod SUV to become a orphan manufacturer collectible. Barrett Jackson 2050 anyone?
07/02, 9:28 AM
posted by:
hummah
That GM spokesperson sounded kind of ****y, like “oh yeah the deadline is bullsh*t because the government isn’t going to throw all this hard work down the drain.” I think the fed should stick to it’s guns and GM should go ahead and liquidate- this one needs to be a tidy bankruptcy even if it GM needs to eat a turd sandwich on the deal.
07/02, 10:10 AM
posted by:
ricky_b
NMOFGM must be crapping his pants right now.
07/02, 12:57 PM
posted by:
Rafa LL
NMOFGM just commented, as Bankruptcy2009.
It’s a single idiot behind all those Buy Americrap comments.
07/03, 9:30 AM
posted by:
ricky_b
I thought that stink smelled familiar.