The WSJ is out with a muchly regurgitated piece, which may, however, finally end up being right. Turns out the negotiations between bondholders, General Motors (NYSE:GM) and the intractable UAW are going nowhere in a hurry, and as the company has a February 17 deadline to report on its progress (of which there has been none), it may finally be time to pull the plug.
GM's options are asking the administration for more money, which at this point has a one in a million chance of being granted (so I'm saying there's a chance), or filing for bankruptcy. The latter should have been the course the company was forced to embark on long ago, as it is the only truly viable long-term option. Hopefully it also takes Chrysler with it.
One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company. The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked.