Quote:
Originally Posted by carfansince73
There are different types of bankruptcy, and I'm no expert but I think you are talking about chapter 7 where the company would be liquidated and sold off leaving nothing. GM would likely go into chapter 11, which I think means they would have a court renegotiate their debts to their creditors and also get additional concessions from workers. Their contracts would be history too. Those holding secure debts, like the bondholders for example, would get first dibs leaving those non-secured, like the unions, last. This happens frequently with the airlines being some of the biggest companies filing ch 11, reorganizing, and then emerging from bankruptcy.
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Thanks I know what I am talking about. When you go to bankruptcy court the judge decide whether the company gets to reorganize (ch. 11) or get liquidated (ch. 7). In this case he/she will have no say. It all depends on equity the company has in what it owns vs. whatever debt it has. GM is like negative 60 billion in equity. IF this was a normal bankruptcy there wouldn't even be a hesitation in liquidation. Trust me I have been reading about this since last year. Mis-information runs rampant on this site.