'Old GM,' Bad Assets Linger On

While the New GM is planning to issue an IPO in the Fall:

General Motors Co plans to file its registration for an initial public offering during the week of August 16, just after the expected date for its second quarter results, according to two people with direct knowledge of the preparations.

A GM filing with the U.S. Securities and Exchange Commission would be the first step toward an IPO to reduce the U.S. government's ownership in the automaker after a $50 billion bailout in 2009.

By filing with the SEC in August, GM is aiming to complete its IPO before the November U.S. elections, according to the sources, who asked not to be named because the closed-door preparations remain confidential.

http://abcnews.go.com/Business/wireStory?id=11233100

The OLD GM aka GM Liquidation is a toxic wasteland that hasn't had much success in selling off properties in this sh*tty economy.

By MIKE SPECTOR

A year into the process of shedding GM's "bad assets," only one former factory and a few other properties have found a second life.

The vast majority of the auto maker's closed offices, decrepit plants and parts depots that were left behind in bankruptcy court remain on the market or are slated for demolition. Some of the properties are contaminated with toxic waste; others are cavernous structures way too big for alternative uses. Few sport good locations.

It could take years to dispose of the 200 remaining properties, the detritus of one of the country's biggest-ever bankruptcies.

Washington last year pumped $50 billion into General Motors to prevent the car maker's collapse and decreed that its "good" assets should be split from the "bad" assets. The U.S. steered GM through a quick bankruptcy sale that sent its best assets to a new, leaner company, now 61% owned by U.S. taxpayers.

The rest of the assets were left in bankruptcy court with "Old GM," a shell of the once-dominant auto maker, renamed Motors Liquidation Co.

The Treasury lent $1.175 billion to Motors Liquidation to help administrators get rid of GM's worst albatrosses. The government didn't expect to recoup the loan. Instead it decided to subsidize Old GM's cleanup and focus on creating a viable "New GM."

Motors Liquidation pegged the value of all its assets at around $2.3 billion in court papers, but officials have conceded from the start they won't come close to recovering that amount.

Unburdened of excess capacity, outmoded factories and much of its debt, the new General Motors Co. produced a $1.2 billion operating profit in the first quarter.

But there is some good news Old GM was able to sell off a former factory in Delaware for $20 million. The only problem is that the factory was sold to a company that received a $500 million loan from the Government to build electric hybrid cars.

Meanwhile, Motors Liquidation has sold one former factory. A judge in June approved Fisker Automotive's plans to buy an old GM plant in Wilmington, Del., for $20 million and use it to build plug-in electric hybrids starting in late 2012. But even that deal wouldn't have come about without government funds: The U.S. provided $529 million in loans to Fisker as part of a plan to stimulate development of advanced-technology vehicles.

http://online.wsj.com/article/SB20001424052748703720504575377471751017174.html
So let me get this straight we have loaned over $51.5 billion to Old GM, New GM and Fisker and we have received a total of $20 million of our own money back so far. Sounds like a deal that would put any other business in bankruptcy court but come November it will be touted as great success by the politicians that voted for the bailout.