In filings with the U.S. Bankruptcy Court, the Obama administration’s auto task force urged the judge in the case to approve the sale of GM’s assets to a newly restructured GM and get the company up and running as quickly as possible. Automotive News reports:
An Obama administration official urged General Motors’ bankruptcy judge to approve a swift exit from Chapter 11 to boost consumer confidence in the auto maker.
“A rapid emergence from bankruptcy creates the highest probability of avoiding the catastrophic and expensive meltdown in GM auto sales that virtually all industry observers predicted,” Harry Wilson, a senior member of the Treasury Department’s auto task force, said in a court affidavit.
Wilson added that Treasury “cannot make an open-ended commitment to GM that Treasury will continue to fund GM’s operations” if the car company continues in bankruptcy, according to the June 25 affidavit posted today.
The formula is pretty simple. The faster GM emerges from bankruptcy, the faster the factories can be restarted and people can be put back to work. That’s good for everyone.