Why GM Should Go Bankrupt


	Why GM Should Go Bankrupt

Brian Wingfield

11-15-2008 11:31 AM

1590 views

tags:

gm, bankruptcy, bailout

Brian Wingfield says:

Interesting take from Portfolio.com on why GM should file for Chapter 11 protection.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/594eae8c-d786-41cf-af24-7c0017137696/0ED22CE5-5A1D-47FB-8085-85BDF066E648/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/09/Can-Bankruptcy-Save-US-Carmakers" href="http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/09/Can-Bankruptcy-Save-US-Carmakers" style="font-size: 11px;">www.portfolio.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/09/Can-Bankruptcy-Save-US-Carmakers"><DIV id="commentsHead"><A id="conversation" href="#commentsforms">Join the Conversation</A>
<SPAN id="numCommHead">15 Comments</SPAN> | <A id="readAll" href="http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/09/Can-Bankruptcy-Save-US-Carmakers/comments">Read All</A>
</DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/09/Can-Bankruptcy-Save-US-Carmakers"><DIV>Why bankruptcy might not be the worst thing that could happen to General Motors.</DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/09/Can-Bankruptcy-Save-US-Carmakers"><DIV> Of course, there are downsides. Shareholders would be wiped out, but the stock is down 74 percent this year alone, so they’ve been pretty much obliterated anyway. The more serious objection is that it would be a catastrophe for vehicle sales. No one, the theory goes, will buy a car from a bankrupt company out of fear that the warranties would be worthless and parts wouldn’t be available. But G.M. has access to plenty of $1,000-an-hour lawyers, and one of them should be able to find a way to guarantee warranty protection to G.M. vehicle owners. Get a court guarantee; buy coverage from Midas or Hertz or whomever.</DIV></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/0ED22CE5-5A1D-47FB-8085-85BDF066E648/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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