Merrill says GM bankruptcy possible

Soyoung Kim
Reuters
Wednesday, July 2, 2008

General Motors Corp will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is “not impossible” if the U.S. auto market continues to slump, Merrill Lynch said.

Other analysts have suggested GM, whose shares fell to a new 54-year low on Wednesday, needs to raise funds to ride out the downturn in the U.S. auto market through 2009.

But Merrill’s estimate of GM’s financing needs is the highest yet. It also carried the most stark warning of the bankruptcy risk for the largest U.S. automaker.

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GM declined to comment directly on the Merrill Lynch report but it believes it has sufficient liquidity for 2008 despite lower volumes and could take more steps to cut costs if sales conditions worsen.

“If conditions continue to deteriorate, we would consider other operating measures,” GM spokeswoman Renee Rashid-Merem told Reuters.

Full article here.

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4 Responses to “Merrill says GM bankruptcy possible”

1. Ron Kent (aka Coffeelover) Says:
   July 2nd, 2008 at 6:56 pm

   F%^K em! They reaped it,,,,,,

   The Largest US Automaker my ass! Almost everything is made overseas….. just like every other company, and all the NWO freakzoids who could not just rely on a comfortable profit, but had to be like a sea-rat (”mine, mine, mine,), and was it not bad enough that all the United States CEOs were making more than thousands of their best production workers! Huh! F%^K em!

   Coffeelover,,,,,,,,
   No worries, they’ll be just like the banks and ask the government (taxpayers) to bail them out as usual. But wait! Was it not the US workers at GM who got screwed the first time around?

2. yellowhak1 Says:
   July 2nd, 2008 at 9:09 pm

   dont think for a moment that they havent covered their own asses its the rest of us that are screwed.

3. vlunk Says:
   July 2nd, 2008 at 10:49 pm

   http://en.wikipedia.org/wiki/Henry_Paulson
   elite

4. me Says:
   July 3rd, 2008 at 9:49 am

   nothing makes me happier than to see the ex-company (i worked for chrysler) tanking. i myself got into the pharmacutical industry, because even rich elite assholes cannot escape age and the medical problems that acompany it.

   although, it should be pointed out that the auto industrie was fucked when we (canadians and americans) allowed Toyota and Honda to sell their shitty wares here, like em or not, you cannot purchase a ford chevy or chrysler in japan and korea. how is that fair trade? if you wont purchase our cars, why should we buy yours?