First GM was anti-bankruptcy because they said it would tarnish their image beyond repair. But this morning at a breakfast in D.C., CEO Rick Wagoner sounded the full Chapter 7 alarm. He claimed that filing for Chapter 11 bankruptcy protection would ultimately push the auto giant into liquidation.
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Instead, Wagoner is urging is an out-of-court restructuring, which he claims would accomplish nearly everything that would a bankruptcy filing while avoiding scared customers and enormous expenses (haven't we heard that last part before?).
The terms of the proposed restructuring were detailed by GM bondholder advisers. They've got their work cut out for them trying to find a middle ground between Obama's autos task force, GM bondholders, UAW workers, and GM itself.
Wagoner dropped the Chapter 7 warning at a breakfast hosted by the Christian Science Monitor, who publish "an independent daily newspaper providing context and clarity on national and international news."
Do you agree with Wagoner claim that Chapter 11 = Chapter 7, or is this a scare tactic from a sick patient who refuses to swallow some really nasty medicine?