qdog,

I agree with you that GM would be best served by filing BK & attempting a reorganization. But...BUT...every time this comes up I ask the same question & nobody's had an answer. I'll try again.

Who, pray tell, is going to provide the Debtor-In-Possession Financing for a GM bankruptcy? BOA? Citi? Warren Buffett? King Abdullah bin Abdul Aziz Al Saud? Paris Hilton? (grin) Ah, and that's the problem. There is nobody to provide the necessary Debtor-In-Possession financing. Even Congress keeps discussing this issue while totally ignoring who's going to pay the light bill.

In normal times, a consortium of the nation's largest banks would pool their resources to provide the needed funding. These are not normal times & our banks do not appear to have any resources to lend anyway since their tarp money has disappeared into a black hole.

Without DIP financing GM would be liquidated.

/tricia

How about instead of the US gov't throwing good money after bad as they currently are doing,the gov't did what you suggest? I agree the pool of banks,et al to finance the DIP is very slim,if it exists at all

qdog, If you google "debtor in possession gm" and read every article that comes up, you'll see that bankruptcy is not an option for GM.

Not an option?? Ya better read some articles instead of glancing at the "headlines"..Tricia makes the point of whom would finance the DIP, but to say it is not an option is simply a fallacy

qdog,

I would agree with you that, maybe, Congress could provide the DIP. But, BUT...if GM files BK then a federal judge would automatically have sole control over the use of taxpayer money. I don't even like how Congress handles our money...much less some unknown federal judge. BK seems fraught with problems. While potentially being a viable option (with Congress providing DIP) it just seems like it would be a chaotic & unruly reality.

As if my opinion matters...what I would do is demand new arms-length Board appointmenets who would serve gratis for a 3-year term; replace all executive management & institute a meaningful salary cap; tell the Union that every paragraph in their contract is up for 'discussion' - there are no 'sacred cows'; establish a time frame for the new management team to submit progress reports towards a new business plan; & appoint a Congressional Supervisory Committee dedicated to the GM restructure (nobody can serve two masters...this Supervisory Committee needs to be solely focused on the GM restructure). If those basics were established I would vote for Congressional DIP financing.

/tricia

t, agree with your thoughts and opinions...However,in lieu of giving GM another nickel,i rather see them do the DIP..And as far as the Union goes, they remain clueless to what it is they are truly facing...

qdog, I'm quite a bit ahead of you - I read the articles. If you had read them, you'd see that bankruptcy is not an option because there aren't banks that can/will provide the debtor financing. If no one will provide financing, the option is gone.

i don't think you read anything except Tricia's response, and while there aren't as many banks to do DIP,it can still happen,as my follow-up post said...google GM and DIP and you'll see that it is an option,whether you THOUGHT it said otherwise or not :)