Confirmed: Sources Say President Considers Bankruptcy Best Option For Automakers

[girl gone mad]

Sources: President Considers Bankruptcy Best Option For Automakers
http://www.clickondetroit.com/news/19060632/detail.html">Click On Detroit

DETROIT -- Local 4 sources confirmed published reports from Bloomberg News and the Wall Street Journal that the Obama administration is throwing GM and Chrysler a line to solve their own problems; however, sources say the White House is doubtful the automakers will properly restructure out of court.

While the Obama administration favors bankruptcy, they also realize that the companies face different challenges.

Sources said the president wants a prepackaged bankruptcy for GM.

Under those conditions, the company would devise a plan and shareholders would approve it before GM files for Chapter 11.

In theory, a prepackaged bankruptcy is supposed to make the process quicker.

Meanwhile, the president is said to be willing to allow Chrysler to go bankrupt and let it be sold off piecemeal.