[kylepo]

Originally Posted by UCF w00t

Their estimates for need for government aid in a chapter 11 scenario are up to $100bil. Basically the idea is that people won't buy cars from a company that's under bankruptcy protection. And I agree with that. Their sales will drop off a cliff until they're operating normally again. Normally a company that files bankruptcy would seek (and find) "debtor in posession" (often referred to as dip) financing but the way the credit market is and the massive sum of money that GM would need to make it through a bankruptcy simply make this impossible; only the government has the ability to fund that.

There's some ways of making ch. 11 work but it's all very ugly and would cost taxpayers much more than taking care of this without the courts.

So really the options at this point are denying all federal aid to GM and allowing them to go ch. 7 or giving them the pittance (in comparison to the banking handouts) they need to restructure without the courts' help.

Oh and how do you think the UAW would react when their contracts are shredded in bankruptcy court? I'll give you one guess and a hint... it rhymes with "strike."