The White House has finally stopped denying that bankruptcy may be inevitable for General Motors (GM) and the other car makers.
Hopefully, with a good debtor-in-possession deal, it can save the tens of billions the previous administration shoveled down Detroit’s maw.
FT: The White House said it was still considering a request from GM and Chrysler for billions of dollars of more federal aid but refused to rule out bankruptcy for the companies.
“Whether the auto industry as we have it now is exactly what we have in a year is something I think is going to be determined by a lot of different factors,” said Robert Gibbs, White House press secretary.
GM on Friday sought to push back against reports that it had become more open to filing for bankruptcy, insisting that “restructuring the business out of court remains the best solution”.
Doubts about GM’s future were heightened on Thursday when the company acknowledged in a regulatory filing that it might not be able to avoid bankruptcy even with more government support. Keep reading >
GM, meanwhile, says that when its auditor said it might go bankrupt, it didn’t really mean it.