GM considering Chapter 11 filing
 

CHICAGO (Reuters) – General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Citing "people familiar with the matter," the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

http://news.yahoo.com/s/nm/20090214/ts_nm/us_gm_plan

As long as they could get rid of UAW.

I have never understood why the normal business processes were not followed. :dunno: I'm afraid bailouts will just prop up weak corporations for a few years (or months). Then the ineffective structure and process will deteriorate to another "need" for a bailout.

The liberals are happy as they can slide socialism advances past an undereducated public. FDR would be proud.

Chapter 11 would be the best route to go... Get rid of the ineffective, outdated way of doing business, and, God forbid, start making money with a decent model lineup.

A bankrupcy judge is about the only efficient way they can cut what they need to, deal with the UAW and draw down the number of dealers. They have proven they can't manage a business (loosing billions in 07 way before the crisis) and take on tough decisions with the dealers and UAW.

Let em fry.

:iagree: They should just let the weak companies die. Unfortunately for the finanicial sector, just about all of the banks would go under. Wonder how well our economy would operate with no banks.

But in the end, what good is capitalism if there is no risk.

As goes the automotive industry in the US, so goes the economy.

1 in 8 jobs in the US is somehow tied to the auto industry.

That's ridiculous. As a taxpayer I shouldn't have to be forced to support a shit company. End the unfair trade policy that is called 'NAFTA", stop importing cheaper Japanese (and soon Chinese) cars that for 2 decades+ were being sold in the US below cost to kill US competition, cut imports of Chinese shit until they start playing fair and stop unfairly pegging their currency to our dollar. We have a massive debt that is further being ramped up as more money is printed and also further deluting the dollar. Meanwhile on the other side of the pond...China... has no debt and a soverign wealth fund to the tune of hundreds of billions.

No banks? Do you realize how many banks there are in this country? On the order of thousands. I think we're a long way from that.