Reply #47: I posted on this yesterday. The WH is focused on the Bondholders.They are NOT trying to hurt the [View All]

[Pirate Smile]

unions or Michigan.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8306314&mesg_id=8306314

"Aides to President Obama say a bankruptcy filing for GM or Chrysler may be the only way for the firms to force stray bondholders to agree to a deal, often called a cramdown, that could see them receive only a fraction of the face value of the original debt.

In a conference call with reporters Monday, a senior official said the bankruptcy procedure would be used to enforce an agreement, even if not all bond or debt holders can be persuaded to reduce their demands. The aide called it a way to avoid the company being blackmailed by a few creditors. "