General Motors Corp, on its first day in bankruptcy, has won court approval to auction its assets with the lead bid coming from the U.S. Treasury and a goal of closing a sale in July to create a reorganized company, according to Bloomberg.
The Obama Administration also said it will be making available about a $30 billion of additional federal assistance to support GM’s reinvention plan. If all goes smoothly, a “New GM” is expected to emerge in approximately 60-90 days.
But one can not help but wonder whether the new GM will become smaller. And if so, will it prosper as it once had?
Then have a look at what will happen to GM within 2 to 3 months. During this period all GM’s saleable assets will be sold, liabilities be got rid off and all debt be restructured. It will cancel its franchise agreements, eliminate 1,100 or more dealers and cut jobs.
It will get also treasury loans from President Obama Administration, which is hoping that the massive aid will help put the company back on its feet.
Enough aid and promises actually. Now people shall only wait and see what will happen before the timeline. From the prospect of a car fun but not an editor, I wish GM could recapture its luster, that magic.