HonestJon
2009-06-03 06:46:35
74. Mike2: Somebody correct me if I’m wrong, but I bet that the government didn’t want GM to go into bankruptcy before the Dems had “paid back” their constituency (the UAW). My understanding is that if a company declares chapter 11 that all contracts with unions are then null and void. However, I’m not sure if GM could have declared chapter 11 when it was in so much debt. If that’s the case doesn’t it have to declare chapter 7 and get liquidated? Not sure here, but I think they really didn’t have much choice.
By the way, thanks for the dibs, vivo!
regards
