Reuters says GM is considering filing chapter 11.
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.”
I think Chapter 11 is the best option for GM. Unions are killing the American auto industry and bankruptcy is the only way GM will get competitive again.
Agreed!
Boy, am I glad we gave them all that cash 2 months ago!
This is the best possible option. GM (and Ford and Chrysler for that matter) are making the best product they ever have, and finally shipping cars as good as the Japanese and Germans. But they can’t turn a profit as long as they’ve got the unions around their necks.