âIf we had taken your advice, Governor Romney, about our auto industry, we'd be buying cars from China instead of selling cars to China.â
â Obama
âI said these companies need to go through a managed bankruptcy. And in that process, they can get government help and government guarantees, but they need to go through bankruptcy to get rid of excess cost and the debt burden that they'd built up.â
â Romney
This exchange is drawn from a headline â âLet Detroit Go Bankruptâ â on an opinion article written by Romney for the New York Times. But he did not say that in the article. (He repeated the line, however, on television.)
Although âbankruptâ often conjures up images of liquidation, Romney is correct in that he called for a âmanaged bankruptcy.â This is a process in which the company uses the bankruptcy code to discharge its debts, but emerges from the process a leaner, less leveraged company.
Ultimately, along with getting nearly $80 billion in loans and other assistance from the Bush and Obama administrations, GM and Chrysler did go through a managed bankruptcy.
http://www.washingtonpost.com/blogs...1dbdc4a-1c61-11e2-ba31-3083ca97c314_blog.html
â Obama
âI said these companies need to go through a managed bankruptcy. And in that process, they can get government help and government guarantees, but they need to go through bankruptcy to get rid of excess cost and the debt burden that they'd built up.â
â Romney
This exchange is drawn from a headline â âLet Detroit Go Bankruptâ â on an opinion article written by Romney for the New York Times. But he did not say that in the article. (He repeated the line, however, on television.)
Although âbankruptâ often conjures up images of liquidation, Romney is correct in that he called for a âmanaged bankruptcy.â This is a process in which the company uses the bankruptcy code to discharge its debts, but emerges from the process a leaner, less leveraged company.
Ultimately, along with getting nearly $80 billion in loans and other assistance from the Bush and Obama administrations, GM and Chrysler did go through a managed bankruptcy.
http://www.washingtonpost.com/blogs...1dbdc4a-1c61-11e2-ba31-3083ca97c314_blog.html
