Quote:
Originally Posted by Suskam
Remember, they are talking about chapter 11 bankruptcy - all they do is get rid of debt and start over. That helps production, the only problem is it hurts the public's perception of the company and they could lose future sales. That's what GM is worried about. Now if it was chapter 13 bankruptcy, they get rid of debt and liquidate everything - that would be BAD.
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Well, that's the major worry. They've outlined a few potential bankruptcy scenarios in their most recent viability plan. All are extremely risky, and a couple result in outright liquidation because there's no way to finance a bankruptcy of this size. hundreds of billions of $$....now compund the potential for an 80% drop in current sales....Chapter 11 isn't as easy as some (not all) people seem to think.