Questions on GM Bankruptcy and Debt-Relief
Here is a look at GM's balance sheet (only the liability portion_ on
Dec. 2008; Dec. 2007; Dec. 2006 that I got from finance.yahoo.com .
Dec. 2007; Dec. 2006
Accounts Payable 24,827,000 64,291,000
Short/Current Long Term Debt 18,472,000 6,047,000
Other Current Liabilities 30,635,000
Total Current Liabilities 73,934,000 70,338,000
Long Term Debt 31,603,000 38,556,000
Other Liabilities 69,027,000
Deferred Long Term Liability Charges 1,823,000 2,967,000 -
Minority Interest 814,000
- - -
Total Liabilities 177,201,000
I realize that GM has declared bankruptcy a few months ago, and this
has nullified much of their debt, BUT NOT ALL OF THEIR DEBT. My
questions involve this facet just mentioned as well as questions on
this balance sheet.
Q1: Why isn't ALL their debts forgiven/nullified, instead of just
select portions of the debt?
Q2: How is it determined that some of the debts get cancelled and
others are retained?
Q3: Is it possible to determine the interest rates on GM debt? I did
a cursory calculation, and it appears to be 18.472% for Dec. 2008,
since (Short/Current Long Term Debt is equal to) $18,472,000, and
this is to be divided by (Long Term Debt, which is equal to)
$31,603,000 = 18.4%. I am very sure that this is a wrong