Friday, February 6, 2009

Auto bankruptcy is imminent?

Reuters reports the US government has retained two law cos with extensivebankruptcy experience and the investment bank Rothschild to advise officialson the taxpayer-backed restructuring of General Motors and Chrysler, a person with direct knowledge of the work said. New York law company Cadwalader, Wickersham& Taft was hired by the US Treasury last month and will consider a range ofpossibilities for the struggling automakers including the prospect of abankruptcy funded by the US government, the person said. Cadwalader is joinedby law co Sonnenschein, Nath & Rosenthal and Rothschild in working with USofficials as they prepare to review turnaround plans being readied by the twostruggling automakers, the person said. A spokeswoman for Sonnenschein in LosAngeles confirmed that the co had been engaged to advise Treasury on "ongoingmatters related to the 2008-2009 developments within the US automobile industry."

Face it, the auto industry in the USA is BANKRUPT, INSOLVENT and unrescuable. It is criminal for our government (read Congress) to billios of my and your money into this debacle.

$25 BILLION given to auto companies with great fanfare.... and behind the petticoat curtain the government hires a bankruptcy advisor!!!!

Stop this theft of our future well being now!

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