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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Problem is that their suppliers are the ones who would be screwed out of the money for the debt they wiped off. And how would the suppliers stay in business?
Which is the difference in Chapter 11 and what they currently are doing.