In an article today, the Wall Street Journal said that General Motors is "more open" to bankruptcy. Really? Did John D. Stoll and Neil King Jr. not read the same press release/statements from GM that I did? Per yesterday's blog post, everything I read said that in spite of the auditor's doubt, GM has not changed it's position regarding bankruptcy. Which means, that they still think it's not the best option. How does that translate into "more open"?
And again, if you look at the numbers I quoted yesterday, how is an in-court bankruptcy process going to cost less than an out-of-court restructuring?
At any rate, the WSJ article prompted GM to release yet another statement to clarify that they are not more open to bankruptcy:
"Contrary to today’s story in the Wall Street Journal, GM has not changed its position on bankruptcy.
"Restructuring the business out of court remains the best solution for GM and its constituents. The company has established a clearly-defined plan to restructure its business and restore GM to long-term viability, and GM is aggressively executing that plan through a series of actions outlined in its February 17 viability plan.
"As a prudent business measure, the company has analyzed various bankruptcy scenarios. However, the company firmly believes an in-court restructuring would carry with it tremendous costs and risks, the most significant being a dramatic deterioration of revenue due to lost sales."
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