GM Heading For Bankruptcy ?
Posted by Big Gav in gm
The rumours continue that GM is doomed if it doesn't get another government bailout, with a Deutsche Bank analyst sending their shares into freefall - GM shares plunge after analyst sees them hitting zero.
General Motors shares plunged more than 30 percent Monday after an analyst forecast their price would fall to zero, saying that even if there is a government bailout of the auto giant, shareholders would not benefit.
"We are lowering our target on GM equity to zero dollars," the Deutsche Bank report said. "Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy-like," it said. "While we believe that GM's secured creditors may get a par recovery, unsecured creditors may get very low recovery. Equity shareholders are unlikely to get anything." ...
The direct plea for government help came after GM and other automakers requested 25 billion dollars in government-backed loan guarantees during talks with Democratic House of Representatives Speaker Nancy Pelosi on Thursday in Washington. Congress recently authorized 25 billion dollars in loan guarantees to help US automakers develop more fuel-efficient vehicles in order to meet upcoming regulations.
Bloomberg has more - GM Skid Reaches 5th Day as Pelosi Backs Emergency Aid.
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