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'Orderly' auto bankruptcy is option: White House
2 B6 K9 J7 m, J6 L: zLast Updated: Thursday, December 18, 2008 | 11:36 AM ET
$ k0 E, n! b8 eCBC News ; A! u& S) [. v( V1 F' E$ {+ E! _$ ~1 ?
The White House is considering an "orderly" bankruptcy for car companies as one of the options it is examining for the industry, according to a spokeswoman for U.S. President George W. Bush./ ?6 J! q- _& ^) c4 X8 u
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The Bush administration wants to avoid a "disorderly collapse" of the sector, Dana Perino told reporters on Thursday.$ o+ `, C. ~9 V& ^
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There is an "orderly way to do bankruptcies that provides for more of a soft landing," Perino said.
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3 a9 K# w0 t3 d$ _"That would be one of the options. I'm not saying that is necessarily what would be announced," she said, according to Reuters: v" U. h% u2 A, }" j; b- ]6 @- ?
9 ]+ n' [% D: R& c7 dPerino said the White House is close to deciding what form a bailout may take.
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The White House is putting a bailout package together after the U.S. Senate voted down an earlier attempt at bailing out the cash-strapped Detroit Big Three — General Motors, Ford and Chrysler.' A" L9 ?8 I! |8 r
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GM denies renewed merger talks with Chrysler
5 c) J3 r) \% N9 g1 ILast Updated: Thursday, December 18, 2008 | 8:05 AM ET Comments65Recommend30CBC News
* g# X* F2 _8 h5 ?6 C: d. xGeneral Motors on Thursday denied reports that it has restarted merger talks with Chrysler LLC.+ n+ `: }. c, g# O3 M. e) e- I' ^
4 t7 J$ G: P. V9 C+ b: p"I can say unequivocally we are not in any merger talks with Chrysler," GM spokesman Tony Cervone told Bloomberg. "Our position on that has not changed."
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GM's denial followed a report from the Wall Street Journal that the two automakers had resumed merger talks while they wait for a bailout package from the White House.
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The Journal said Cerberus Capital Management, the owner of 80.1 per cent of Chrysler, initiated the restart of talks. Cerberus allegedly indicated it was willing to sell part of its stake in Chrysler.* Y8 D u$ P( l
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The two struggling companies held merger discussions earlier this fall, but they came to a halt on Nov. 7. The firms said then that a merger would be impractical and distract from their cash problems.
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: T/ \: Z5 O ^& d& i! ~! KBoth firms are worried they may not have the funds to cover their bills within weeks.
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The U.S. government is considering a multibillion-dollar rescue package for the Detroit Big Three automakers — GM, Chrysler and Ford — which have suffered from falling sales. |
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