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