http://www.bloomberg.com/apps/news?p...iJU&refer=homePresident Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said.
Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker canít form an alliance with Fiat Spa, said members of Congress who have been briefed on the subject and two other people familiar with the administrationís deliberations.
IMO, this is a welcome development. Such a move offers GM and Chrysler potentially their best prospect to regain viability. It gives them leverage over creditors and unions in taking the necessary steps to restructure successfully. Of course, the outcome is not assured.