General Motors (GM) lobbyists are trying to terrify the nation into keeping the company on life-support. Jjudging from the panicked whimpering from Washington, it appears they are succeeding. So it’s time we started talking about the conditions we’re going to put on this latest bailout.
Thomas Friedman (NYT) and Paul Ingrassia (WSJ) have started the list. We’ve added to it. Here it is in bullet form:
- Stock goes to zero
- Existing debt-holders take a hit ($0.30-$0.40 on dollar?)
- Money dispensed in small amounts in return for senior convertible debt, pending the meeting of goals
- Management and board gone as soon as strong replacements can be found
- Union contracts torn up
- Company radically downsized
- Remaining employees offered new, fair employment terms (pay, benefits) which they can accept or decline at their choosing
- Company commits to designing and building cars that people want.
Anything else? Let us know below, and we’ll add.
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