GM Bankruptcy Update

General Motors (GM - Analyst Report) has gone through its first couple days in bankruptcy. The main issue was for $33 billion in funding from the US Government being approved. The company also sold its Hummer division to a Chinese concern for an undisclosed amount. There are 16 bidders for Saturn and 3 bidders for Saab. Announcements on these two brands may come soon. Restructuring may occur at a rapid pace.

The creditors list has been filed. Main creditors include: Delphi (DPHIQ) ($111 million), Lear (LEA - Snapshot Report) ($45 million), Johnson Controls (JCI - Analyst Report) ($33 million), TRW (TRW - Analyst Report) ($28 million), Magna International (MAG - Snapshot Report) ($27 million), American Axle (AXL - Analyst Report) ($27 million), Tenneco (TEN - Analyst Report) ($15 million), Visteon (VSTN) ($10 million), US Steel (X - Analyst Report) ($10 million), AK Steel (AKS - Analyst Report) ($9 million) and Goodyear (GT - Analyst Report) ($7 million). Auto suppliers will be impacted greatly by this filing.

Overall, the bad news is out and we upgraded the Auto group from underweight to neutral just 2 days ago.

Read the full analyst report on GM

Read the full analyst report on LEA

Read the full analyst report on JCI

Read the full analyst report on TRW

Read the full analyst report on AXL

Read the full analyst report on TEN

Read the full analyst report on VSTN

Read the full analyst report on X

Read the full analyst report on AKS

Read the full analyst report on GT