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Reply #23: I think the biggest difference between the airlines and GM is that [View All]

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nonconformist Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-31-09 02:06 PM
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23. I think the biggest difference between the airlines and GM is that
The airlines weren't required to make thousands of new planes assembly-line style to operate minimally. When the core of your business is manufacturing, you have to be able to make your product to operate. If GM is forced into a Chapter 11, they will need Debtor-In-Possession loans to pay their part manufacturers and suppliers to continue to make cars. The problem is that thanks to the banks destroying the economy, those DIP loans are non-existent right now. That's why many experts are saying that GM won't be able to file a traditional Chapter 11 bankruptcy - it will have to be a 7. Total liquidation. And the trickle-down effect will be astronomical.
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