From The Washington Post:
The Obama administration is preparing to send General Motors into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor, sources familiar with the discussions said. [Read More]
House Republicans slammed the administrations restructuring plan. Representatives Mike Pence, Pete Sessions, Eric Cantor, and Jeb Hensarling voiced their concerned this morning, “We are extremely concerned that in the name of restructuring General Motors, the Presidential Task Force on the Auto Industry … has begun waging what some believe amounts to a war on capital: contractual rights of investors are being trampled by the government under the rationale of ‘extraordinary circumstances,’ they said. As with government run bankrupcy just weeks ago, the Obama administration is usurping the rights of secured creditors and bondholders while giving sweetheart deals to the United Auto Workers.
