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Originally Posted by Dragoneye
Chapter 7 is death. Under Chpt. 7 rules, everything GM owns would be sold off to the highest-bidding vulture. General Motors Corporation would cease to exist. They would never consider that.
According to the article, they're considering Chpt. 11. Which is, ideally, a government funded and directed restructuring. That's not 'new' news. They would be foolish to ignore any angle of the situation. And I'm certain they've been reviewing it for some time, now. But that doesn't mean they want to go Chpt 11. They don't, and they would do absolutely everything possible to prevent that from occurring. It's of course an "option", just like jumping off a cliff with no harness: it's extremely risky for a company of that size, in this economy.  |
They are selling less cars now then ever. They cannot pay existing debt and expenses with the current revenue they are generating. Either they get a huge cash infusion to service that debt/expense or they cut down the debt. How are they going to do that? They can't so only one alternative CH11. Like it or not, it's going to happen.