Bankruptcy With A Twist - Altman on Detroit

Bankruptcy With A Twist - Forbes.com: "Some fear that a GM bankruptcy announcement will cause immeasurable harm to the economy and to financial markets. The current situation of 'waiting for another shoe to drop' in the credit market meltdown includes a possible GM-Chrysler bankruptcy filing--and no doubt there will be some negative consumer and vendor fallout should they file.

But pointing out the high likelihood of bankruptcy, something that I and the credit-default swap market have been forecasting for some time, will help reduce the surprise impact. And the indication of guaranteed government support via the post-bankruptcy DIP financing route could help blunt consumer fears of liquidation, lost warranties, spare-parts availability and other bankruptcy costs that the management and board of GM worry about. Face it, those costs, in the form of lost sales and profits, have already mostly taken place as potential customers assess the health of the major auto companies in their purchase decisions.

The management and board"