Chrylser, GM, And Chapter 11

How The Legal Proceeding WILL PROBABLY Work

As anticipated by many, including this author, all the billions that the US government has poured into Chrysler has not been enough to get all the players in that game to agree to a plan of reorganization. Now that august name is going into a Bankruptcy Chapter 11 proceeding. GM has another 30 days to get all the players to agree to a plan, and what few reports leak out are not optimistic that everybody will agree. There may be a few key holdouts as there have been in Chrysler, and a Chapter 11 proceeding may be necessary for GM to pull things in a neat package. As you will see, not so easy. The government is the biggest creditor, the only real source of money, and the protector of the public weal, but a contract is a contract. That's what the recalcitrants keep saying.