GM said before a crucial vote by bondholders on a tender offer of stock for debt that the company would declare bankruptcy if the bondholders rejected its offer.
The bondholders did, but so far GM hasn't filed any Chapter 11 papers. Most analysts seem to think that it's only a matter of time, however. One reason for the delay could be that the company is trying to get approval from the United Auto Workers for a new set of concessions.
In the meantime, GM has already begun bundling its European operations under its German company, Adam Opel, in order to facilitate a sale of the business.
The prices were low, but apparently not low enough.
After a drop in sales and "significant liquidity problems" that led to a sale to the Buxbaum Group, Filene's Basement has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
The nation's oldest discount retailer also struck a deal that would see a Crown Acquisitions affiliate purchase 17 of Filene's Basement's 25 stores, including the original location in Boston's Downtown Crossing.
Well, it's finally happened.
After months of speculation and conjecture, President Obama has announced that Chrysler has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court in New York, becoming the first major US auto manufacturer to declare bankruptcy since Studebaker in 1933.
The news of the bankruptcy filing comes in spite of Chrysler's recent breakthroughs with the United Auto Workers and Fiat, and the decision to file for bankruptcy came after a group of Chrysler's creditors broke of restructuring talks after rejecting the government settlement proposal.
Homeowners who are facing foreclosure because of second mortgages on their homes received a piece of good news from the Obama Administration on Tuesday. Financial institutions will receive subsidies from the federal government out of the Troubled Assets Relief Program fund to modify the terms of second mortgages.
About half of all at-risk borrowers have second mortgages. The previous mortgage modification program paid lenders to reduce rates on primary mortgages, but did not address second mortgages. These second mortgages can make staying current on payments difficult, even when homeowners received assistance under the previous foreclosure alternative program.
Two members of Detroit's Big Three automakers had big announcements today regarding their attempts to secure more federal bailout money.
GM confirmed several aspects of its massive restructuring process, and Chrysler released news of a tentative concession agreement with the United Auto Workers union and a ratification of its deal with the Canadian Auto Workers.
The announcements come at a time when the auto manufacturers are attempting to meet the demands of the US government in order to qualify for more federal assistance and stave off bankruptcy filings.
