The current administration is looking at an orderly bankruptcy as a possible solution for auto industry troubles.
Wired PR News.com – The White House announced on Thursday that the current administration is considering an ‘orderly bankruptcy’ to assist automakers in need of a financial bailout. As reported by the Associated Press (AP), as automakers await approval for a multi-billion dollar loan, White House officials expressed the possibility of using other options to assist the industry to prevent a complete collapse. As quoted of Press Secretary, Dana Perino, “There’s an orderly way to do bankruptcies that provides for more of a soft landing… I think that’s what we would be talking about.”
Congress killed a recent bailout package bill, which led to plans for auto giants Chrysler and General Motors to anticipate plant closings in the near future and millions of job losses.
President Bush has reportedly stated he has yet to make a decision on what kind of assistance will be provided and is quoted in the report as proclaiming “Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring… These aren’t normal circumstances. That’s the problem.”