GM was never going to "go out of existence." If left alone to solve its own problems, GM would have restructured itself under existing bankruptcy law.
The difference between Obama's restructuring and the legal/traditional bankruptcy that was available to GM, is two fold: first, the primary bondholders would not have lost their investments and the retirement funds built on that investment capital. You should know that a bondholder is very different from a shareholder. Under bankruptcy law, the bond holders are protected by law in exchange for the use of their money in building the company. Teacher and police unions were among these primary GM bond holders. Instead of being protected by law, Obama either convinced other stockholders to change the rules via a vote of some sort, or he changed the rules by rite of him being president of the U.S. Which ever, the change was made, the primary bond holders lost 60% of their investments including all of their retirement funding. As a second result of the Obama bankruptcy rescue, the auto union became the primary owner of GM. As it turns out, the GM "bailout" was nothing short of felonious theft by those who are above the law. (see "End notes" for "bondholder/shareholder" definitions).
In the 1Q of 2010, Obama secretly took money from either Fannie/Freddie or TARP (no one knows for certain because no one really cares), and used it to pretend that GM had paid off 6.7 (or was it 5.8 - but who's counting) billion dollars in loans "5 years ahead of schedule. . . . . with intererst" The event was widely reported and the temporary CEO of GM even made an advertisement declaring GM's success in dealing with the loan payment.
All of this was/is a monumental lie. If the loan (actually 6.7 billion to the US and 1.4 billion to Canada) was paid, it is for certain that GM did not get the money from its profits -- having lost money every previous quarter dating back three years. The 4th Q 2009, the quarter just before the surprising payoff, reported a 4.5 billion dollar loss. In the end, GM still owes between 25 and 48 billion dollars (again, who's counting). But it gets worse.
100,000 jobs were lost, permanently and 2600 dealerships shut down, permanently.
Stock prices for GM are currently selling for around $23 per share, as I write this post, down from its IPO of $33, representing a huge loss of capital investment for the "suckers" investing in this government boondoggle. Analysts tell us that the stock needs to sell for $53 per share in order for the taxpayers to break even and the Initial Public Offering to show any kind of profitability.
And Chrysler? It is now 100% owned by the German company, Fiat, at a loss of 1.5 billion dollars to the American taxpayer -- an Obama success my but . . . it ain't true.
Smoke and mirrors is what we have here and a shameful cover-up by the Marxist Media.
End notes and related article:
Definitions: the difference between a bondholder and a stockholder:
If you own a stock, you are one of the owners of the business that issued the stock.
If you own a bond, you are a lender to the business that issued the bond. (definition source: Fisher Financial blog)
Understand that stock or shareholders do not need protections because they are the company. Bondholders need bankruptcy protection because they service only as lenders. That is why bondholders' investments are fully protected under bankruptcy law. Obama's first action of lawlessness (and there have been several) was to violate bankruptcy protections for the bondholders.
GM's IPO: Suckers Found - the Daily Beast is hardly a right wing affair, but was critical of this IPO from the beginning.
GM's IPO boost good news for taxpayers - leave it to the Marxist Misfits at the NBC affiliate network to get it wrong.
Chrylser an GM Pay Off Their Debt Early? - a Sodahead article that is comprehensive in a devastating sort of way.
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