3 thoughts on “STRIKE ONE”

  • OliverWendelHolmslice says:

    I'm still trying to understand the GM/government arrangement. Chapter 11 is treated like it's some kind of dirty taboo, but companies that man up and take that plunge when they have to often come out stronger, leaner, and more stable than before. Ask the airlines. Not that they have, or ever had, a truly stellar business model, but Chapter 11 at least made them competitive again.

    If the government is willing to step in and assume 50% of the equity stake, why not just force GM into Chapter 11 and then have the gov't provide the DIP financing? Chapter 11 would allow GM to discharge a portion of its debt and re-negotiate contracts with the unions. The Obama administration could also predicate DIP financing on some form of "reasonable" union contract to prevent GM from fucking its union too hard. What's the deal?

Comments are closed.