I was so proud of Romney making the correction in last night debates that GM and Chrysler did in fact file for bankruptcy relief. This BS Obama has been saying that ‘..Romney wanted GM to just go bankrupt...’ is beyond annoying.
And every lawyer understands that there are several levels of bankruptcy proceedings.
The two that are most often used by corporations are Chapter 7 and Chapter l1.
Obumbler keeps saying that Romney wanted to close GM and put everyone on the street without a job.
That would be Chapter 7.
That is not what Romney suggested at all. Romney was referring to a Chapter 11 proceeding in which a trustee is appointed by the court. The trustee designs a plan that protects the workers, creditors and company assets.
It is correct that some assets will be sold and creditors may be paid less than their invoiced amounts, but all are treated equally and the company continues in business.
In other words, the company is put on a strict budget and a payment plan that requires everyone to contribute equally.
I am not a lawyer, but I was for 56 years in a business that involved large corporations, some of whom went through Chapter 11.
In most of those, the employees saw no change in their pay or hours and the companies are still in business today.
Obumbler as a lawyer, knows that is how Chapter 11 works and he is a liar in this case just as he is in reference to Libya and many others.