Bankruptcy for Chrysler and GM



General Motors and Chrysler executives are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multibillion-dollar government bailout, Bloomberg reports, citing a person familiar with their internal discussions.

Staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy — negotiated with workers, creditors and lenders — could be used to reorganize the industry without liquidation, Bloomberg reports.

Negotiations on how to assist the automakers with their financial problems are splintered among small groups, making it unlikely a proposed solution such as bankruptcy would emerge until next week at the earliest, according to the report.


Subscribe to National Review