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Originally Posted by kylepo
when companies go in to chap 11 they need money to do that correct? The credit markets are still pretty frozen they are getting better but NO one would provide the chap 11 financing for GM and so that leaves the gov and our tax dollars. Some analysts say that it could cost up th 100 billion to do a chap 11 and guess where that is coming from?
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I'm not being a smart alec here, really. Can you guide me to this info? It just doesn't compute. GM would initialy owe nothing. After the proceedings GM would then be on a schedule. And I'm fairly certain that the businesses that GM owes, would still do business with them but on a cash basis. With no initial debt, GM would have operating capitol. People don't utilize the Chap. 11 option because it costs more. And in both Chap. 7, and 11 it's the businesses that take the hit. You don't think that the Gov. pays the businesses that a filer owes do you? Maybe I missed something. 100 Bil?