It seems there me be more than a little fear mongering coming from the sick members of the Big Three:
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.
“That could be a ploy so they will not be forced to file,” said Edward I. Altman, a bankruptcy expert and a professor at the Stern School of Business at New York University.
Could be ?
Think about it this way; if General Motors and Chrylser are forced into bankruptcy then the very people who are presenting these restructuring plans —- the guys who run the companies and the UAW heads — will be on the losing end of whatever deal ends up coming out of Bankruptcy Court.
It’s in their interest to convince people that bankruptcy is not an option when, in reality, it is probably exactly what these two companies need to move on from where they are today.
Remember that the next time you see panic coming from Detroit.
I have a blog on a similar topic. Perhaps we can exchange info?