Quote:
Originally Posted by rmyers
I don't think any of us that are suggesting bankruptcy as an option wants to right GM off. What we want to see is a healthy and sustainable auto industry and would love to see GM as part of that industry. And honestly I don't care how they do it, but they should not be borrowing money from our government. Doesn't everyone realize that our goverment does not have the money to lend.
|
And here we have the #1 reason why Bankruptcy
won't work (forget consumer perception):
If GM files for Chapter 11...they must get DIP financing to insure their existance, otherwise it's straight to Chapter 7 and the collapse of the Industry. That money will come, in some fasion, from the government!!!! Couple that to the sheer volume of money we're talking here...in the neighborhood of one HUNDRED billion....and those
won't be loans.
Chapter 11 is not a free-ride. No company as large as GM has ever filed for bankruptcy. No company with as negative a balance-sheet......
EDIT: Why do you say they'll never pay back their loans? That's false.