"W.H. discusses possible bankruptcy" - WH is focused on the Bondholders taking a haircut.

[Pirate Smile]

Aides to President Obama say a bankruptcy filing for GM or Chrysler may be the only way for the firms to force stray bondholders to agree to a deal, often called a cramdown, that could see them receive only a fraction of the face value of the original debt.

In a conference call with reporters Monday, a senior official said the bankruptcy procedure would be used to enforce an agreement, even if not all bond or debt holders can be persuaded to reduce their demands. The aide called it a way to avoid the company being blackmailed by a few creditors.

Speaking on condition of anonymity, the official acknowledged that if a bankruptcy filing takes place, the administration will give up control of the process to a judge who has to approve all of the company's expenses and is the only one who can void existing debt or contracts.

However, Obama aides said they expected the court would defer to and quickly approve any bankruptcy plan that comes in with the White House’s backing, something quite unusual for bankruptcy court.

http://www.politico.com/politico44/perm/0309/no_gm_stick_up_f56a0831-87f0-4838-89d4-40afc4b95287.html

The White House seems focused on the bondholders!