General Motors Corp (GM.N: Quote, Profile, Research), nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.Considering that the UAW just walked out on their talks with GM, my guess is that they'll head back to Capitol Hill for another feeding session at the trough. I don't think that the Beltway Boys and Girls are going to let them declare bankruptcy. After all, "something has to be done" is their mantra these days. It would be nice if they'd just back away and let the market work out the way it's supposed to. This country has bankruptcy laws for a reason, let's let them work this time around, instead of throwing more taxpayer dollars at the problem and piling on the debt. And, while we're at it let's obey the Constitution limits that are supposedly in place. I can't find anything in it that says the government is authorised to bail out failed companies with money they took from us.
"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."
Citing "people familiar with the matter," the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.
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