Originally Posted By: bepperb
Chrysler got around this by filing for bankruptcy. I don't understand why GM won't. For better or worse Chrysler is making changes quickly. GM hasn't moved in a year.
The Chrysler bankruptcy scheme is not final, and there are many unhappy bondholders. I do not think the scheme will be upheld, I do not think Chrysler's effort at Chapter 11 will succeed. I expect Chrysler to go into Chapter 7 liquidation; none of the factories will open again, Fiat is covering its bets with a bid for Opel.
For hundreds of years, bondholders have had first claim on the assets of a bankrupt debtor. Barack Obama cannot repeal the legal framework of bankruptcy law by himself, he cannot overturn 200 or 300 years of precedent. In fact, I suspect the basic principles of bankruptcy law extend back nearly 2000 years to Roman law.