Bloomberg reports that Obama’s transition team is exploring the possibility of prepackaged bankruptcies as a solution to the dire situation the Detroit Three find themselves in. According to an anonymous source, Obama’s team has already contacted at least one bankruptcy- law firm to say that Daniel Tarullo, a professor at Georgetown University’s law school who heads Obama’s economic policy working group, would call to discuss the workings of a so-called prepack. And as the worm turns on the idea of a bridge loan, a prepackaged bankruptcy seems to be about where the middle ground shakes out to. So is Obama leading to the middle? Not openly, at least not yet. “That’s not true,” a spokesman for Obama’s transition team tells Automotive News [sub] of the Bloomberg report. So then is the story that Obama’s not exploring all the options? Or he is, but doesn’t want it publicized? From the sound of things at recent congressional beggary testimony, none of the D3 are willing to consider the possibility of bankruptcy of any kind. But if the their turnaround plans, due to Congress by December 2, aren’t convincing enough there will be bankruptcies. And not neat, pretty prepacks. Time to face the strange?
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