Analyst: GM not in immediate danger of bankruptcy

Thu Jul 3, 2008 9:05 AM EDT

DETROIT — An auto analyst with JPMorgan says General Motors Corp. is not in danger of an imminent bankruptcy, but will need to raise about $10 billion in cash to weather the downturn in U.S. auto sales.

Analyst Himanshu Patel said Thursday in a conference call that fears of a bankruptcy have been overblown. GM's shares slid to a 54-year low Wednesday on worries about the company's cash needs and speculation about a bankruptcy filing.

GM shares are up 3.6 percent to $10.34 Thursday.

Patel says GM will likely seek more cash and announce further restructuring in the third quarter of this year.

But he says GM doesn't need the cash immediately, since it has enough to fund what he expects will be an $18 billion cash burn through 2009.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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{"commentId":2110395,"authorDomain":"westrm"}
Don't spin me bro!

Sounds like a business economic rocket science analyst firm is going out on a limb with a leadership position for the speculators to take advantage. [emergence out of bankruptcy will be a play]

Signalling the end of yet another pump-n-dump bubble [truck/SUV bubble] in corporate America. [I know, lets re-tool]

Thanks to the self-serving leadership and vision of the automotive industry CEOs and their cracker-jack market strategist teams with their golden parachutes. [its my bonus, stupid]

The big 3 ought to be able to destroy careers, pensions and benefits. While prepping the average shareholder on a fixed income for another round of now you see your dividend, now you don't until you re-inest in our new scam. [is this a long or short against options?]

Because in hindsight, there is NO WAY the big 3 automakers could have seen China, Toyota, Honda, Nissan, Hyundai, KIA or Smart well positioned GOING FORWARD...

{"commentId":2110395,"threadId":"305308","contentId":"1635427","authorDomain":"westrm"}
    Reply#1 - Thu Jul 3, 2008 10:31 AM EDT
    {"commentId":2117840,"authorDomain":"markhilton1452"}
    markhilton1452

    Try to provide more customer friendly support GM, else you will be in deeper trouble as Americans have started to look for Non-American brands in buying a car......Count the days......wake up before getting in to trouble. ""

    {"commentId":2117840,"threadId":"305308","contentId":"1635427","authorDomain":"markhilton1452"}
      Reply#2 - Fri Jul 4, 2008 12:12 PM EDT
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