Quote:
Originally Posted by ArcAngel
well I hope eventually the govt will back out.. no?
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All of this remains to be seen. But in reality, they won't "merge" but if GM were to enter Ch. 11, the government would be forced to offer debtor in posession financing so that they could operate and reorganize. No private lender has the $$$ to do this kind of gargantuan task so the fed would have to take that role. That just means that the fed jumps to the front of the line in the order of who gets repaid first should GM become profitable again or file Ch 7 (in which case assets are liquidated to repay at least some of the debt). This is what you see happening right now with Circuit City.