Jay’s parents have gotten quite, uh, spendy with their retirement income, and now they’ve got a lot of debt they can’t pay off. This has become Jay’s problem not because he’s a party to any of the debt, but because they’ve put him down as a reference and now bill collectors are harassing him.
Saturn will not have a new life as part of Penske, the company that, among other things, distributes Smart cars in the U.S. Talks between Penske and GM fell apart today, and so did any chance for a deal.
The Chicago Tribune says that when 17-year-old Brianna Rice was diagnosed with celiac disease in February — she had insurance. Her insurance company, however, has rescinded that coverage because her parents allegdly lied on her application — by neglecting to mention her troubling medical history of dizziness, elevated cholesterol levels, ongoing fatigue and a persistent cough.
Yesterday, a gorilla* stormed through the offices of Samsonite Corp, the “world’s top luggage maker,” and jumped up and down on their financial status. Their retail unit filed for Chapter 11 bankruptcy and will close approximately half of their 173 stores.
UPDATE: The Redskins have vacated their judgment.
Cupcakes all around!
Government General Motors emerged from bankruptcy today, and the shiny new version of GM is now leaner, in charge, and ready to manufacture cars that people actually want to buy. Maybe.
General Motors has reached an agreement with the government to let consumers file what are known as product-liability claims after the company escapes from bankruptcy protection. The big win for consumers means that if a manufacturing defect in an old G.M. causes injuries in the future, consumers will still be able to sue G.M. in state court.
Up until its recent plunge into bankruptcy, GM had been our nation’s second-largest advertiser — behind only Procter & Gamble. The company spent $2 billion dollars annually for the past few years — and though they’ve recently cut back and fallen into third place behind Verizon, the company apparently plans to continue to spend their pre-bankruptcy budget of $40-50 million a month on ads.
Eddie Bauer is the latest retailer to file for bankruptcy, and it says it hopes to be sold outright rather than try to reorganize, refinance, or liquidate. The AP says the clothing company had “$476.1 million in assets and $426.7 million in debt at the time of the filing Wednesday with the United States Bankruptcy Court of the District of Delaware,” and that by declaring Chapter 11 now it hopes to reassure suppliers and stave off impending cash flow problems.
Those home ticket-printing fees just weren’t enough to help Six Flags pay down their $2.4 billion debt load. The economy and bad weather have taken their toll, and the company declared Chapter 11 bankruptcy over the weekend.
Fiat has completed their purchase of Chrysler, clearing the way for the troubled automaker to exit bankruptcy — but what will the new company look like for consumers? Well, according to BusinessWeek you may be visiting your local Fiat, Jeep, Dodge dealer.
A recent Harvard study tells us that health problems cause more than half of America’s bankruptcies, and that the vast majority of people seeking bankruptcy protection have health insurance. The study paints a hauntingly familiar picture: people get sick, insurance covers nothing, so they’re forced to mortgage their homes to stay alive.
Good news for Saturn-lovers, the brand is close to being saved by Roger Penske, a Detroit businessman who runs the Penske Automotive Group (PAG) chain of dealers, and distributes the Smart line of mini-cars in the US. The Detroit Free Press says that the deal will have GM manufacturing Saturns for two years, after which Penske will be looking for a new manufacturer.
Ameriquest originated a mortage, securitized it, and sold it. Then pretended it still owned the mortgage to a U.S. Bankruptcy Court judge. Whoops.
Let’s say the U.S. has poured billions of dollars into a failing company. How strongly should it try to protect that money once the company files for bankruptcy? The Washington Post is reporting that the plan for GM—which may go belly up as early as Monday—is for federal officials to select 5 or 6 of the company’s new board members, and have a say over which 6 of the existing board will remain. The UAW gets to choose another, and Canada might possibly be given one slot to fill. The rest of us will probably just get t-shirts or a souvenir mug.
While we were concentrating on other things (Snuggie testing, for example), there has apparently been something of a backlash going on against NPR’s Planet Money podcast for its rude treatment of Congressional Oversight Panel Chair Elizabeth Warren. NPR’s Adam Davidson has since expressed regret that he talked over Ms. Warren in a rude way — but despite the mea culpa, a series of links about the issue has popped up in our inbox more than a week later.
The automotive bloodbath continues today as GM plans to eliminate up to 1,200 dealerships. The dealers could start getting notification as soon as Friday.
Mark Calisi, 47, who owns Eagle Auto-Mall in Riverhead, New York, says he was “devastated” to learn that his dealership would be closed. He said Chrysler accounts for a third of his business, which also sells Volvo, Mazda and Kia, and that on Thursday he had to sack 30 of his 100 employees.