According to Consumer Reports the best cars to buy under $20,000.00 are the Honda Fit, Hyundai Elantra SE, Mazda3 i Sport, Pontiac Vibe 2.4L, Scion tC, Scion xB, Scion xD, Ford Focus SES and Toyota Corolla LE. All models earned very good or better scores in Consumer Report’s tests.
GM’s secured lenders are likely to be paid off in full. This is different than their counterparts at Chrysler where senior creditors were required to accept less than the full face value of their loans. GM’s reorganization plan will provide approximately $6 billion to pay off secured creditors. Subordinated lenders, however, typically GM’s bond holders, will likely recover only 12.5 cents on the dollar. While this may seem unfair the logic behind it is that the senior secured creditors were willing to accept a lower return in exchange for having a priority position in the event of the firm filing for Chapter 11 protection. Bondholders, and other subordinated lenders, had agreed to accept a higher return but along with that took the risk that they could sustain significant losses in the event that General Motors had to file for bankruptcy protection.
Chrysler concluded its deal with Fiat on Wednesday, June 10, 2009, which in effect ended its 42 day reorganization through bankruptcy. As part of the deal the federal government gave Chrysler $6.6 billion in exit financing. Under the terms of the agreement Chrysler sold the bulk of its assets to Fiat. This was an important milepost for the Obama administration which has been seeking to aid the ailing American auto industry after years of losses and declining sales. Chrysler and government officials had repeatedly demanded that the court approve the restructuring quickly inasmuch as Chrysler was losing approximately $100 million a day while its plants were shut and other overhead costs had to be paid. It is anticipated by Chrysler, Fiat, and the federal government that a new car maker will emerge unburdened by the present debt levels and labor costs. Fiat will run the new company that will now also sell smaller fuel-efficient cars worldwide.
Think your Chrysler vehicle may be a California lemon. Call the Law Offices of Delsack and Associates for answers at 888-Ex-Lemon (888-395-3666).
It has been reported that GM is close to concluding a deal with Koenigsegg, a Swedish manufacturer of high end sports cars. This was reported on Swedish television which also reported that a group of Norwegian investors were part of the proposed deal. Saab, operating under Swedish law, had separated from GM in February and thereafter announced that it was seeking new investors to take over the company. Thus far, unlike the United States government, the Swedish government has refused to provide any loan guarantees or capital infusions. It is withholding such decisions until there is an actual sale of the company. Koenigsegg is a small manufacturer of high-performance sports cars which was founded in 1994 and is recognized as a company that produces ultra fast cars and for its attempts to break speed records.
It is expected that many GM cars will be sold at heavily discounted prices particularly by dealerships scheduled to close during this period.
Want to know more about the California Lemon Law, call the Law Offices of Delsack and Associates at 888-Ex-Lemon (888-395-3666.)
It is believed that with the smoothing of the way by the government the major aspects of the bankruptcy case should be resolved within 60 to 90 days.
If you think your GM vehicle, in California, may be a lemon, call our offices for a free consultation. Our toll-free number is 888-Ex-Lemon (888-395-3666).
Because of the bankruptcy laws. GM may cancel its franchise agreements with dealers and has thus far announced plans to close more than 1,100 dealerships and may announce further cuts.
Think your GM vehicle may be a lemon. In California call the Law Offices of Delsack and Associates. We specialize in the California Lemon Laws and are happy to answer your questions. 888-Ex-Lemon (888-395-3666).
No. It is reorganizing under Chapter 11 of the United States Bankruptcy Code which allows companies to reorganize by selling off assets, canceling contracts, closing operations, and restructuring its debt. Once a company achieves these goals it may emerge from bankruptcy as a new corporation with a “fresh start.”
If you think your GM vehicle may be a lemon, please call our offices and we will be happy to answer any questions you may have and do a free case review for you. 888-Ex-Lemon (888-395-3666).