White House Open To Option Of Bankruptcy Filing By Auto Cos
17 Februar 2009 - 10:23PM
Dow Jones News
U.S. President Barack Obama's chief spokesman left open the
possibility Tuesday that the administration would facilitate a
bankruptcy filing by General Motors Corp. (GM) and Chrysler
LLC.
White House spokesman Robert Gibbs was asked by reporters
whether the president would consider a government-backed bankruptcy
filing by one of the auto makers.
"I wouldn't close the door" on the option, Gibbs said.
He added that the administration is considering numerous options
for restructuring the beleaguered auto industry, but will wait
until it receives restructuring plans from GM and Chrysler before
deciding how to proceed.
Those plans are due Tuesday.
"Obviously there are different paths that can be chosen and
we're anxious to see what type of restructuring details each of the
automakers themselves have put together in conjunction with their
bond holders, their employees," Gibbs said.
The plans are supposed to describe how GM and Chrysler are using
a combined $17.4 billion in government loans to restructure to
ensure their long-term viability.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com