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GM, Chrysler May Need Bankruptcy To Survive: Obama

Law360 (March 30, 2009, 12:00 AM EDT) -- After rejecting restructuring proposals by General Motors Corp. and Chrysler LLC and demanding the resignation of GM CEO Rick Wagoner, President Obama hinted Monday that bankruptcy could be necessary for the two troubled U.S. automakers.

“While Chrysler and GM are very different companies with very different paths forward, both need a fresh start to implement the restructuring plans they develop,” he said. “That may mean using our Bankruptcy Code as a mechanism to help them restructure quickly and emerge stronger.”

Obama tried to put a positive...
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