Friday, February 20, 2009
GM & Crysler’s Attempts At Bullying
Businesses filing for bankruptcy need loans to work out their troubles, or face liquidation. But General Motors and its smaller rival, Chrysler, have threatened that they will need $125 billion, in what would be the largest bankruptcy financing packages ever, if they do not receive the additional federal aid they are requesting. G.M. alone has said that it needs $100 billion to finance its bankruptcy. To many, that figure seems far too high, and may be a negotiating tactic to keep the companies out of bankruptcy. Several bankruptcy experts doubted that G.M. would need to draw upon anywhere near that amount to get court protection from creditors.