GM and Chrysler are finally expected to get some help from Uncle Sam, but only as part of plan that wrings out concessions from autoworkers and creditors. Otherwise, see you in bankruptcy court.
Morning Call: December 19
General Motors Corp and Chrysler are close to securing emergency loans as part of a U.S. government aid package that would demand sweeping restructuring at the troubled automakers, according to sources familiar with the talks.
Bridge loans to carry the companies for several months could be announced as early as Friday, said the sources, who were not authorized to publicly discuss the negotiations.
That would stave off the prospect of an “orderly” bankruptcy, one option being considered by the U.S. government after more than a month of wrangling.
The aid package being spearheaded by the White House would demand that both automakers restructure by seeking new concessions from unions and creditors, two people briefed on the talks said.
Trader Daily � Detroit Nears Bridge Loan to Somewhere