Chevy Volt a Failure - GM to Layoff 1,300

You're wrong. They missed a payment in September.

The "loan restructuring" as you are trying to sell this (and you know EXACTLY what happened), involved a company that had been given a $465 loan at public expense, under terms none of us get, not having the money to make an interest payment and calling up the Energy Department to say so. So they "restructured" the terms, which meant a conversation that went like this: "Jesus guys, you are making us look bad. First Fisker and Solyndra. Now we have to deal with this shit? OK, we can't admit to another fuck up and force you into bankruptcy, so you have a month and a half to mine the secondary equity market to come up with some more cash to buy more time. We'll call our boys over at Goldman and see what muscle we can put behind it for you."

 

Yeah. The source is reality. They had working capital of less than $30 million left from all the money they've blown through and couldn't make their payment, let alone maintain the agreed upon assets to liabilities ratio, which was the reason given for the pass they got. The terms weren't "renegoiated," even under the loosest definition of the word negotiation. The Energy Department had two choices: File a suit against them that would have initiated a bankruptcy or give them a pass to try to raise equity. They didn't want another Solyndra, so they gave them a pass and even helped them arrange their secondary offering (which Elon Musk bought very little of personally -- which tells me he knows he is sitting on a sinking ship; because he personally sopped up 29 percent of the initial offering).

 

Changes WHAT argument? You want to tell me I am full of shit, tell me HOW I am full of shit; that post is lazy and lame.

They defaulted on their loan. That is reality. Their liabilities exceeded their assets until the DOE let them MISS A PAYMENT (i.e. -- default on their loan) in order to buy time to raise money on the secondary equity market.

What "argument" have I changed? And what is suiting me about pointing out reality to someone who is apparently so thick that he or she not only doesn't understand what a default is, but calls me a bullshitter when I point out a reality they don't seem to want to accept?

 

Once again -- for the 100th time in the history of this board -- you make assumptions about me, without knowing a thing about me. I own a car stoop. I know how to pump gas. Amazing, I know.

I didn't answer you earlier, because you ask idiotic open-ended questions that have nothing to do with anything. And for the millionth time on this board, I knew you were making assumptions about my life yet AGAIN, without knowing a thing about me. Yes, I own a car. I pump gas. My blood is red. Any other questions?

If you even paid half attention to me on here, rather than just telling me -- wrongly -- over and over again what my life is, you'd know that.

 

Once again. ...

Tesla had a payment due (It was due by October 15) and couldn't make it. They had less than $30 million in working capital left, and their debts had piled up to close to $800 million (greater than their assets). They had drawn down the entire government loan, so they couldn't even use principle to make an interest payment, the way I believe (but am not 100 percent certain) they had previously. They called the DOE at the end of September and said they were going to have to default on their loan -- they didn't have the money.

The DOE faced with that prospect had no choice but to either initiate a law suit against the company or give them an extension. They gave them the extension. -- until February 15, as it turns out. My memory was that they got less time than that. That was designed to give the company time to raise money in the secondary equity markets so it didn't go insolvement.

What I don't understand is why you are arguing with me about basic facts -- to the point of calling me a "bullshitter"? That isn't bullshit. It is what happened. In the world of lending, not being able to make a scheduled payment under the terms you agreed to is called a default.

http://blogs.marketwatch.com/thetell/2012/09/25/tesla-motors-puts-off-u-s-loan-payment/