IS GM HEADED FOR CHAPTER 11?

IS GM HEADED FOR CHAPTER 11?
-MaxChevy Magazine www.MaxChevy.com

Wall St. analysts say that GM may be forced to file for Chapter 11 bankruptcy protection if the company is unable to secure funding. Merrill Lynch says the automaker may need to raise as much as $15 billion.

With sales plummeting, GM stock is doing likewise. Merrill Lynch analyst John Murphy moved GM’s rating from “buy” to “underperform” and said the stock might get as low as $7 per share. Stocks were at $10.07 per share Wednesday, July 2, on the New York Stock Exchange, the lowest value since 1954.

“While we do not believe GM is facing an immediate cash crunch, the urgency to shore up liquidity to navigate through a difficult 2008-2009 has risen significantly in recent months,” Citigroup analyst Itay Michaeli told Reuters. He predicted a full recovery in the U.S. auto market would not begin until 2010 or 2011.
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