SocraticGadfly: Why GM isn't really out of bankruptcy

September 16, 2010

Why GM isn't really out of bankruptcy

So-called "old GM," now known as Motors Liquidation Company, is dumping the costs of numerous abandoned plants on the hands of local governments. And, using a Treasury loan, not likely to be repaid for years, to finance the cost of trying to dispose of these plants, while still waiting for a bankruptcy reorganization to be approved.

So, got that, bailout boosters? GM isn't out of bankruptcy; just a small part of it.

And, judging by the confusion involved with some shuttered plants, the lackadaisical attitude of new GM, and the sucky economy in Michigan, old GM will be in limbo or worse for some time.

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