In the note that was sent to investors, Lache wrote that that General Motors' U.S. cash reserves could very well fall to $5 billion by late December meaning that the largest American automaker would virtually run out of cash and would not be able to pay the supplier bills for its domestic operations that come due in January 2009.
And even in the scenario that GM somehow manages to get a government aid, Lache supported that such an action would most likely make unsecured investors such as shareholders make a run for it.
Last Friday, 7 November, GM announced that it lost $2.5 billion (net loss) in the third quarter of the year while burning $4.8 billion in cash. The firm's (global) cash reserves on September 30, 2008, totaled $16.2 billion.
"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business," the company said in a statement.
In order to keep its operations afloat, GM is looking to secure at least $10 billion in government loans.
Via: Freep
On Monday, the Chrysler Group LLC reported its first quarter gains since exiting bankruptcy almost two years ago in June 2009. The Auburn Hills-based automaker, which is now operated by Fiat S.p.A., said net income totaled $116 million in the first quarter...
The first quarter numbers are in for General Motors and things aren't looking bright for the largest U.S. automaker as the Obama administration's June 1st bankruptcy deadline nears its end. General Motors recorded a net loss of $6.0 billion in...
As if General Motors isn't in enough trouble already, the company's shares took a steep fall today after several reports including one from the New York Times late on Sunday, claimed that the Obama administration wants the automaker to begin bankruptcy...
The light at the end of the tunnel seems to be getting dimmer and dimmer for General Motors as the company announced a $30.9 billion net loss for the 2008 calendar year, the second biggest in its 100-year old history. Furthermore, GM burnt $5.2 billion...
It can't get any worse for Ford Motor Company - or can it? The American automaker today announced a third quarter net loss of $129 million which is actually smaller than the same period a year ago when FoMoCo lost $390 million. However, the company...