Since the taxpayers are also creditors there is only one answer to this question. All of the others will also be hurt but the creditors have the most at stake.
Since the current administration decided they could act as the Judicial and Executive branches and change the rules of BK for the Chrysler BK it has to be the creditors that take the biggest hit. Good luck on decent loan rates and terms in the future Corporate America.
It's not a question of if they file bankruptcy, its a matter of when. I don't think there is any plan GM can come up with to satisfy the government. Going off the deal they came up with for the Chrysler BK, I believe the creditors are the ones to lose.
The government threw the lifeline in order to keep things going and keep the union alive. If GM had BK'd without taking the bailout $$ then they could have dumped the unions and started fresh. Union wages are still a problem.
The feds have their tentacles in the business and will keep the unions and even reward them.
The Chrysler bailout will reward the union with 6billion and a 55% ownership of the new company. Taxpayers put in something like 14billion in and will see Zero.
This is just more government control of our companies. Just wish they would get control of fuel pricing. Just my .02
My dad spent his life as a UAW worker for Ford Motor Company and I must say thank God he is not here to see the automotive industry go down the way it is.
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.