The big 3

[Big Nate]

Should Ford, GM and Chrysler file for bankruptcy??


I say yes. They will come out of it better then they are now and it would also void all the union contract and they could start to pay there employees equal to the other auto companies.

 

[ZoomZoom Diva]

Under the current forms of bankruptcy, the terms would mean death to the company that declared it and would likely bring the others down as well. Simply put, the suppliers would not be able to provide the components to build the cars if the they are not assured they will be paid for them... and an automaker bankruptcy disrupting payment of current receivables could send them into bankruptcy to. No parts means the inability to build new cars means no revenue. This also means they would not be able to accumulate the debtor-in-possession financing necessary to reorganize in the bankruptcy process.

The only method that might work would be a new special form of legislated bankruptcy that would hold the makers still responsibile for supplier and specified obligations while shedding other specified obligations.

 

[Workdawg]

While bankrupcy would be pretty bad for their suppliers, wouldn't them failing altogether be worse? I agree that if they declared and still went under, the suppliers would likely also fail at being out huge amounts of money, but the risk might be better than the alternative if there is no bailout.