Reply #12: GM, Chrysler Short of Time as Senate Debates Rescue (Update1)

[ozymandius]

Dec. 11 (Bloomberg) -- The debate over the automaker bailout in Congress has become a race against the clock.

The U.S. House voted 237-170 last night to approve emergency loans for General Motors Corp. and Chrysler LLC, shifting the focus to the Senate, where Republican opposition threatens to delay or kill the legislation.

Democratic leaders and the Bush administration are trying to beat a deadline to save the companies and the millions of jobs dependent on the industry before GM and Chrysler burn through their remaining cash. For GM, that could be in three weeks.

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The legislation would let GM and Chrysler draw on $14 billion of loans to keep operating while they develop restructuring plans required by March 31. Without the aid, the two companies would likely have to declare bankruptcy by the end of the year.

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Senate Republicans emerged from a meeting yesterday with Vice President Dick Cheney and White House Chief of Staff Josh Bolten and said the measure doesn’t have enough support to clear a 60-vote legislative hurdle. Democrats control the chamber 50-49.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aFHp8xmezjY4&refer=us