GM Bankruptcy V2.0

As a result of the VERY political way that the Federal bailout of GM was managed, to include the unusual bankruptcy process, GM now stands in jeopardy of losing everything.  Essentially the judge who oversaw the initial process may reopen the case because he feels information was kept or even hidden from him regarding the full disposition of old GM's full assets and liabilities. 

 If the case is reopened, all of GM's old liabilities and obligations come roaring back as well as an obligation to immediately repay the remaining taxpayer investment.  Repaying the taxpayer will consume almost all of GM's operating cash, leaving them in a very difficult situation.

Why is this such a mess?  It appears to many that b/c the FedGov was looking for short-term political gain they didn't take sufficient care with the process.

“They didn’t care about the company long-term,” risk analyst Whalen said. “The process was politically driven to be done as fast as possible, focused on securing short term support from the [United Auto Workers union].”
The allegation of union favoritism has dogged the Obama administration throughout the auto bailout. In addition to General Motors Canada’s debt, Treasury faced similar charges while handling the bankruptcy of Delphi, GM’s independent parts supplier.
“The government did a sloppy job with the bailout,” the bankruptcy expert said. “We have a fully functioning bankruptcy process based on centuries of common law, standard ways of doing things.”
“The federal government didn’t want pension plans to bear any costs associated with traditional bankruptcies … and now you’re faced with this.”

Again, this is the problem with crony/political capitalism.  Not only does government have a terrible record of picking companies that are unfit, but governments also have a terrible record of short-cutting market processes to deleterious effect. 
The full article is HERE.