Quote:
Originally Posted by CamaroScotty
What came out today is already well known, however, since it came from an auditor, it seems to have freaked out Wall Street.
If you read between the lines, what this basically means and what we have already known, is that if GM does not get the second round of loans from the Federal Government (due March 31), they will be forced into bankruptcy. Most people feel that GM will not be allowed to file for bankruptcy due to the collateral damage it would have on the global economy.
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The govt. is in the process of formulating a govt. backed bankruptcy plan now. There will be no more straight out loan money from the govt. Congress knows now that no matter how much money they "loan" GM in their current state, they will never get it back, and the company will end up filing for Ch. 11 anyway. So, since they've had $5.6 bil of our tax money since December, Congress is not going to let GM file ch. 11 on their own to protect them from giving that money back.