It's Official: GM Files For Bankruptcy Protection
Professor G. Marcus Cole is quoted in USA Today in a story about General Motors filing for bankruptcy today:
The filing, at the U.S. Bankruptcy Court in New York's Southern District, is the largest in U.S. manufacturing bankruptcy. It is tantamount to a massive reorganization designed to keep the American institution running. The carmaker's good and bad assets would be separated under what the Obama administration hopes will be a speedy Chapter 11 reorganization.
The move is part of a risky gambit by the White House to shrink the American icon — once considered a symbol of economic might and dynamism — to a sustainable size and give a majority ownership stake to the federal government.
A likely result would be to scale down the size of GM and sell it off in pieces, says Marcus Cole, a financial law professor at Stanford Law School.