Sunday, February 15, 2009

GM Offers U.S. Two Choices: More Aid or Bankruptcy

The Wall Street Journal - General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money to fund the company's operations, or provide financial backing as part of a bankruptcy filing, said people familiar with GM's thinking.

The competing choices, which highlight GM's rapidly deteriorating operations, present a dilemma for Congress and the Obama administration. If they refuse to provide additional aid to GM on top of the $13.4 billion already committed they risk seeing an industrial icon fall into bankruptcy.

Some experts and members of Congress say bankruptcy reorganization is the surest way for GM to cut costs and become viable. But it could be a politically unpalatable development during a recession that already has thrown millions of workers out of jobs.

1 comment:

Corey Ryan said...

At least no one saw this coming. Oh wait, didn't the company straight up say "this isn't enough?" Shouldn't we let them go bankrupt and see if they can take up the steel industry's model?


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