Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Road Walker who wrote (438081)	12/4/2008 12:14:46 PM
From: i-node	Read Replies (1) of 1573927

In the case of car companies, operating without revenue is not an option. Unless it was a very structured chapter 11, probably with more support than the $34B number, they would never make it out and would progress to chapter 7. Chapter 11 doesn't involve "operating without revenue". A company isn't even a candidate for 11 unless they can show viability. It is the first thing you do in the process. If you can't show viability (i.e., how revenue can exceed expenses) then it is tossed out of court for the creditors to have a feeding frenzy over. The bankruptcy court will toss out, or at least, substantially curtail, the labor contracts that are making it impossible for GM to compete. This will happen quickly, because it is obvious to anyone who understands the subject that these are the core problem GM faces. When this is done, the company is viable even with a lesser market share. There is no way we would see a liquidation. You may have PORTIONS of the company liquidated to generate cash, but not the company as a whole.

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