If you goal is truly to save the Auto industry bankruptcy can not work. The airlines continue to sell tickets while in bankruptcy-certainly fairly cheap tickets. The auto industry can not sell $500.00 cars.
Also, you need parts to stay in business. Parts manufacturers have already signaled unless a deal is reached, they will not send the parts. The plants shut down and liquidation begins.
There is no way in the current financial situation, GM could get debtor financing-won’t happen. The banks are not lending to healthy companies much less bankrupt companies. Nope-we have a loan or the big three go away in a matter of days and weeks most likely.
Except that Congress has said repeatedly that the Feds would provide DIP financing.