This is an alternative plan for the restructuring of the US automobile industry and also a solvency analysis of General Motors. I was one of the first analysts to advocate that GM should file for bankruptcy protection under Chapter 11 of the US Bankruptcy Code, although I also believe that the government should not turn its back on this important firm, but provide a massive debtor-in-possession DIP loan to sustain it during what is likely to be a long restructuring period.
After failing to get congressional bailout packages, GM and Chrysler received in December 2008 a $13.4 billion loan and a likely additional $5 billion for interim financing they say is necessary to restructure these...
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