portfolio.com - 11/17/2008
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There's a bailout vs bankruptcy meme going around with regard to GM -- a choice which makes me want to tick "none of the above". I've seen it in dozens of places of late, but since it comes with the imprimatur of Paul Krugman , let's look at the argument of Jonathan Cohn :
GM ...
online.wsj.com - 11/17/2008
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online.wsj.com —
General Motors is a once-great company caught in
a web of relationships designed for another era. It
should not be fed while still caught, because that will leave it trapped until we get tired of feeding it. Then it will die. The only possibility of ...
(more)
Why Bankruptcy Is the Best Option for GM
corner.nationalreview.com - 11/13/2008
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corner.nationalreview.com —
What would it mean to have GM go
bankrupt? A change in ownership and a renegotiation of
contracts. The factories, computers, office space, intellectual property and so forth that are now owned by GM would not disappear; they would basically become ...
(more)
Bankruptcy for GM
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Felix Salmon Says: Not Bailout or Bankruptcy But Bailout and Bankruptcy for GM
J. Bradford DeLong's Grasping Reality with All Eight Tentacles —
... GM: The Bailout vs Bankruptcy Meme: At heart, this argument is simple. There's no available DIP financing for an orderly Chapter 11 bankruptcy, and Chapter 7 liquidation would be disastrous, therefore we need a bailout which avoids any kind of bankruptcy at all. But I don't see why a government bailout must, ipso facto, avoid any kind of bankruptcy. GM alone has $35 billion in long-term debt, most of which is trading at about 20 cents on the dollar. That might only be a drop in the bucket compared to its total liabilities of $193 billion, but it's a good place to start: if ...
A Bankruptcy And Bailout For Detroit
The Daily Dish | By Andrew Sullivan —
Felix Salmon doesn't agree with the the bailout vs. bankruptcy meme surrounding the big three. Yglesias makes a similar argument for making the best of a unique situation and fusing the two concepts: Everyone says that part of the conditions of doing a bailout is going to have to be some major restructuring of this and that. But normally Chapter 11 bankruptcy is precisely the means through which such restructuring is done. If unusual circumstances mean we can’t do Chapter 11 and we need extraordinary congressional intervention, then it seems to me ...
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The Bankruptcy of GM
delong.typepad.com 11/14/2008 — We don't like to let financial firms go bankrupt because bankruptcy shuts down their business. Buying and selling financial assets is what they do, and bankruptcy requires that financial claims be largely frozen while the court sorts it out.
By ...
Question of the day - GM or Not GM
varifrank.com 11/9/2008 — Question of the day -
"So why can't GM be allowed to go into bankruptcy?"
Seems to me that United Airlines and half a dozen other companies I can name have gone into bankruptcy without also going out of buisness. GM goes into bankruptcy it gets ...
GM: Bankruptcy or More Aid
online.wsj.com 2/14/2009 — GM's viability plan will offer the U.S. a choice to commit billions more in bailout money or provide financial backing as part of a bankruptcy filing.
A Quick Bankruptcy for GM?
meganmcardle.theatlantic.com 4/14/2009 — I'm struggling to understand how the government thinks that it can get GM in and out of bankruptcy in the blink of an eye. In a "prepackaged" bankruptcy, where there's substantial agreement among the parties, that may be possible. But ...
GM Retains Bankruptcy Counsel
online.wsj.com 12/12/2008 — GM hired experts to help it explore bankruptcy protection as Senate lawmakers neared a tentative agreement on a bailout package that could see a vote Thursday night.
Union-Busters Want GM To File Bankruptcy
firedoglake.com 11/14/2008 — Let's call it what it is :
[N]ot everyone agrees that a Chapter 11 filing by G.M. would be the disaster that many fear. Some experts note that while bankruptcy would be painful, it may be preferable to a government bailout that may only delay, at ...
GM hires bankruptcy advisers | detnews.com | The Detroit News
detnews.com 12/12/2008 — Robert Snell / The Detroit News General Motors Corp. has hired bankruptcy counsel and restructuring advisers to prepare for a filing if Congress does not authorize $14 billion in emergency federal loans. "The Board is meeting frequently and is ...
AIG Is Driving GM Into Bankruptcy
businessinsider.com 4/1/2009 — GM (GM) has 58 days to negotiate to convince bondholders to take a major haircut or debt-for-equity swap. But it doesn't sound like it's going to happen. Why not? Because the bondholders don't seem interested in taking the ridiculous haircut that ...
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