NBR Washington bureau chief Darren Gersh asks Anant Sundaram of the Tuck School of Business to grade the financial plans U.S. automakers presented to Congress during the bailout hearings. Sundaram also explains in detail how he would value General Motors.
And here is Sundaram's conclusion:
Key Issues:
In the absence of a court order, what will make the lenders/labor go along?
If I was the ‘car czar,’ over the next few months, I will be keeping a keen eye out for progress on whether and how far they can get lenders and labor to bring down the $66B number to at least what is promised (~$34B), hopefully even lower. The rest may be largely fluff.
It is important, however, to not underestimate potential tussles and refereeing that will be required to mediate between these two crucial stakeholders.
Anant Sundaram's Analysis (PDF) This links to a copy of the analysis Anant Sundaram of Dartmouth's Tuck School of Business performed on the restructuring plan GM submitted to Congress on December 2, 2008.
U.S. House Committee on Financial Services (PDF) The committee offers a link to the complete plan General Motors sumbitted on December 2, 2008.
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