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Thread: GM Bankruptcy / SIRI Contract?

  1. #1
    Keysmark is offline
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    GM Bankruptcy / SIRI Contract?

    My question is: If GM declares BK, is then the contract SIRI has null and
    void, thus enabling SIRI to renegotiate more favorable term?

  2. #2
    Wirestripper is offline
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    Far as I know.......Yes.......

    But GM is not going to file. The current administration is protecting the union and will not allow that to happen.

    GM Canada just announced they have reached a deal with the union there. It will be formally announced Monday and could cause a stock bump and some action in the markets by midday.

  3. #3
    john is offline
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    Wirestripper, I am going to have to disagree with you here. I think they stay the same. Mel has said many times that the contracts are what they are and will not change until they are up. Also in a bankruptcy restructure who here thinks a judge is going to make it tuffer on the company restructuring.
    Last edited by john; 03-08-2009 at 08:55 PM.

  4. #4
    Wirestripper is offline
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    Quote Originally Posted by john View Post
    Wirestripper, I am going to have to disagree with you here. I think they stay the same. Mel has said many times that the contracts are what they are and will not change until they are up.
    Yeah, I know what he said....."A contract is a contract.....etc...."

    But that's not what happens in a BK court. All contracts are null and void and renegotiated on a need priority basis. Everything changes and nothing changes as it depends on the bean counters.

    If there were a structured BK, as has been put forth by many, including myself, Siri's contracts could all be tossed. There are all sorts of in between things that could happen. The judge could decide the deal is good for GM and keep it. Or not.

    The point is, SIRI would not instigate anything. It would be done by the court receivers. They would have the ball and they could end it, or force compliance.Unless the contract is violated on GM's side.

    All moot, because Pelosi, Dodd and Mr. O will not let the union be damaged. No matter how much it costs taxpayers in the end.

    I am currently stocking food and ammo.........

    IMHO

    just sayin.........

  5. #5
    homer985 is offline
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    Quote Originally Posted by Wirestripper View Post
    But that's not what happens in a BK court. All contracts are null and void and renegotiated on a need priority basis. Everything changes and nothing changes as it depends on the bean counters.
    With the amount of money that GM pulls via the XM Distribution Agreement, I can't see a bankruptcy judge canceling that contract in a BK hearing. It's too valuable to GM.

    Besides, GM has an equity stake in Sirius as well as BOD representation.

    Perhaps a willingness to listen to plea for lowering the amount that GM makes from it -- but I don't see a Judge canceling it or changing it, nor do I see GM doing it either.


    -------------

  6. #6
    Wirestripper is offline
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    "Besides, GM has an equity stake in Sirius as well as BOD representation. "


    Thanks Homer! I learn something new everyday here!

    You are right, They likely would not void a contract that is good for GM.

    But the question was, Could they?

    That is what I tried to answer. LOL......

  7. #7
    john is offline
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    Wirestripper, What the hell was that. Coming from me it was nonsense but when homer says basically the same thing I did, you say, ok your right.

  8. #8
    homer985 is offline
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    Quote Originally Posted by john View Post
    Wirestripper, What the hell was that. Coming from me it was nonsense but when homer says basically the same thing I did, you say, ok your right.
    John...

  9. #9
    Wirestripper is offline
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    Quote Originally Posted by john View Post
    Wirestripper, What the hell was that. Coming from me it was nonsense but when homer says basically the same thing I did, you say, ok your right.

    Hang on a sec and I will re-read what both of you said and try to explain........



    OK.....John

    Here is what I said in my second post.......

    "If there were a structured BK, as has been put forth by many, including myself, Siri's contracts could all be tossed. There are all sorts of in between things that could happen. The judge could decide the deal is good for GM and keep it. Or not."

    So.......I saw Homers post as basically agreeing with me in a tactful way. I figured we were just arguing semantics anyhoo so I agreed with what Homer said I did not agree with but I already had done so and it really did not matter much cuz we all really agree with most things anyway........Sooooooooo I agreed with Homer.

    Did I say a BK was not going to happen?

    Bwahahahaha! I can't wait till next week......LOL
    Last edited by Wirestripper; 03-08-2009 at 09:49 PM.

  10. #10
    john is offline
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    Ho Wirestripper, dont make excuses now. Homer knows what just happen, just look at the face he gave me, that says it all.

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