California Autos Examiner

Saturday, January 31, 2009

R-O-L-A-I-D-S Spells Relief, Well Not This Time

GM is looking for relief and not the kind that any TV commercial can fix. This time around it needs a break from a potential seven billion dollar tax bill it could face thanks to its restructuring efforts. Chrysler would not face the same issue because it is a privately held company. The problem is that GM is asking debt holders to convert their holdings to stock and that kind of transaction runs afoul of government rules aimed at preventing companies from using distressed-asset transactions as a way to avoid paying taxes.


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