Matthew T. Berry Bankruptcy Law Blog on Lawyers.com

At this point, we have all seen how even a corporate giant such as General Motors can be brought to their knees due to financial problems. The economic meltdown has affected regular people, small companies, and the largest companies out there. The good thing for many of these companies and individuals is that bankruptcy provides a way to reorganize and emerge in better financial shape.

President Barack Obama has been saying from the beginning that he thinks bankruptcy is probably the best way for GM to become a competitive automaker again. Whether they undergo a full blown financial reorganization or more of a “surgical” bankruptcy, they do have some options, although they are limited.

“Surgical bankruptcy is a made-up term to give people comfort,” said James Shein, a Northwestern University Kellogg School of Management professor and a turnaround expert. “Unless the court makes some really gutsy moves, we’ve got the odds of it bracketed somewhere between slim and none. Conceptually it’s a good idea, but practically it’s going to be tough.”

What GM needs, of course, is a lender to finance court-supervised reorganization. But this is a touch proposition in the current banking landscape. We all know that GM has already borrowed $13.4 billion from the government.

For individuals and families, bankruptcy advice in Atlanta, it’s usually the home mortgage which is their Achilles heal. For GM, it’s a bit different. One of their major issues is a bond debt of $27.5 billion and $20.4 billion owed to a union-run health care fund, plus money owed suppliers.

Berry & Associates - bankruptcy lawyer in atlanta2751 Buford Hwy, Atlanta, GA 30324
Phone : 1-877-715-0306

GerogiaBankruptcyFiling.Com