Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

It appears you may misunderstand how bankruptcy works.

If GM files for bankruptcy, no government will assemble any committee to "oversee" the new GM. The government did attempt a non-bankruptcy solution, but if GM files for bankruptcy that all goes away.

The bankruptcy is overseen by the creditors committee and the bankruptcy judge.

The new GM will be overseen by it's new shareholders, who will consist of existing GM bondholders and various GM creditors who have seniority.

The aid given by government prior to the bankruptcy will be paid-off in full or in part, depending on the seniority they were given, by the bankruptcy court.