Bush looking into 'Orderly Bankruptcy' for Detroit, as opposed to...?

Filed under: Government/Legal, Chrysler, LLC., GM

The House of Bush told reporters this morning that the administration is looking into an "orderly" bankruptcy for General Motors and Chrysler that would be part of an overall rescue package. One possible plan is to give the two automakers enough cash to make it through the next few months (essentially the bailout funds that GM and Chrysler pleaded for in front of Congress) and after that time a federal overseer would sit down with the executives and other interested parties to discuss filing for Chapter 11.

White House spokesperson Dana Perino said during the press conference that "...the president is not going to allow a disorderly collapse of the companies... [it] would be something very chaotic that is a shock to a system. There's an orderly way to do bankruptcies that provides for more of a soft landing." Perino quickly added that no final decision has been made.

The plan would likely include major banks providing debtor-in-possession financing for GM and Chrysler (Ford isn't part of the plan), and would require serious concessions from the UAW, stakeholders, suppliers and investment banks.

[Source: New York Times]

Bush looking into 'Orderly Bankruptcy' for Detroit, as opposed to...? originally appeared on Autoblog on Thu, 18 Dec 2008 14:03:00 EST. Please see our terms for use of feeds.

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