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Bush appears to be considering a prepackaged bankruptcy of sorts for GM and Chrysler. I guess this would include government-guaranteed Debtor-In-Possession financing.
This could be the best available outcome, depending on the terms of the bankruptcy.
This could be the best available outcome, depending on the terms of the bankruptcy.
Bush Says Bankruptcy May Be Option For Autos
An "orderly" bankruptcy may be the best way of handling the struggling U.S. auto industry, President Bush indicated today as he spoke before the American Enterprise Institute, a conservative Washington think tank. However, he said he hasn't decided what action he will take, the Associated Press reports.
White House press secretary Dana Perino said today, “There's an orderly way to do bankruptcies that provides for more of a soft landing. I think that's what we would be talking about.”
Bush said bankruptcies organized by the federal government could be an option.
“Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring,” he said to the group. “These aren't normal circumstances. That's the problem.”
Perino said: “The president is not going to allow a disorderly collapse of the companies. A disorderly collapse would be something very chaotic that is a shock to the system.”
But there are a lot of options out there, including short-term loans out of a $700 billion financial sector bailout fund.
Perino said the administration is close to making a decision, but would not lay out a specific timetable. The decision may not come this week, she said.
An "orderly" bankruptcy may be the best way of handling the struggling U.S. auto industry, President Bush indicated today as he spoke before the American Enterprise Institute, a conservative Washington think tank. However, he said he hasn't decided what action he will take, the Associated Press reports.
White House press secretary Dana Perino said today, “There's an orderly way to do bankruptcies that provides for more of a soft landing. I think that's what we would be talking about.”
Bush said bankruptcies organized by the federal government could be an option.
“Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring,” he said to the group. “These aren't normal circumstances. That's the problem.”
Perino said: “The president is not going to allow a disorderly collapse of the companies. A disorderly collapse would be something very chaotic that is a shock to the system.”
But there are a lot of options out there, including short-term loans out of a $700 billion financial sector bailout fund.
Perino said the administration is close to making a decision, but would not lay out a specific timetable. The decision may not come this week, she said.
from me.
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