GM, Chrysler bankruptcy 'an ugly situation'

摘要

Commentators increasingly argue that bankruptcy is the only way to compel the discipline required to remake General Motors and Chrysler LLC. Be careful what you wish for. A bankruptcy judge not only could tear up union contracts but also could break contracts with suppliers and overrule state franchise laws protecting dealers. Ironically, although the automakers warn that bankruptcy would drive away consumers, car buyers may have the least to fear from a bankruptcy. "It's an ugly situation that leaves nobody happy," turnaround expert John Groustra said of Chapter 11 bankruptcy. But stakeholders "could be worse off in a prolonged bankruptcy" than in a bankruptcy filed sooner rather than later.