Determination Of Viability Summary - GM

The Loan and Security Agreement of December 31, 2008 between the General Motors Corporation and the United States Department of the Treasury (“LSA”) laid out conditions that needed to be met by March 31, including the approval of Labor Modifications, VEBA Modifications, and the commencement of a Bond Exchange (all as defined in the LSA). As of the date of this memo, the above steps have not been completed, nor are they expected to be completed by March 31. As a result, General Motors has not satisfied the terms of its loan agreement. Additionally, after substantial effort and review, the President’s Designee¹ has concluded that the GM plan, in its current form, is not viable and will need to be restructured substantially while GM operates under an amendment to the existing LSA.

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And, what is the appropriate compensation for running General Motors into the ground (losing $82 billion in 4 years) and costing the taxpayer tens of billions of dollars? Well, Rick Wagoner walks away with a $20 million pension.

It is this kind of fucking crap that continues to do significant structural damage to sentiment and confidence.