“There’s an orderly way to do bankruptcies that provides for more of a soft landing,”
These officials said the preferred solution would be to force a restructuring of the industry outside of bankruptcy court, extracting concessions that would make the companies more cost-competitive with foreign automakers.
In return, the Treasury would tap the financial rescue fund, called the Troubled Asset Relief Program, to make loans to the companies.
After a week of talks between the automakers and the
In his speech Thursday,
“The autos obviously are very fragile,” he said. He added that he was concerned about what President-elect
Taxpayer loans, the
Investors may have also been reacting to a report in
The automaker’s senior executives have said repeatedly that bankruptcy was not a viable solution because consumers would be reluctant to buy a vehicle from a bankrupt automaker.
There was no immediate comment from the
In a traditional bankruptcy proceeding, the U.A.W.’s contracts could be voided and the union forced to renegotiate benefits like health care.
The union’s president,
Both companies are cutting production to stretch their available cash. On Friday,
Legal experts said Thursday that despite discussion of an
“It’s not going to be easy, it’s not going to be pleasant, or palatable, but it’s the only solution that makes the least bit of sense,” said
If the companies were to file for bankruptcy, major banks would provide financing, with federal funds as security for the
Some lawyers have suggested that the two companies could receive
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The Nazis, Fascists and Communists were political parties before they became enemies of liberty and mass murderers.