The Big Three CEOs were in Washington D.C. on Thursday pleading their cases for a government bailout, but it appears as though two of the three have not completely ruled out a bankruptcy filing. Chrysler and General Motors are reportedly considering accepting a pre-arranged bankruptcy deal in order to secure billions in federal loans.
Citing sources familiar with the situation, Bloomberg is reporting that both Chrysler and GM are considering a bankruptcy deal in a last ditched effort to secure low-interest government loans worth up to $34 billion.
However, even if Chrysler and GM accept a bankruptcy deal to ensure the federal loans, it’s not a guarantee the automakers would survive through 2009 or beyond. Even a pre-arranged bankruptcy is viewed as a death sentence for any of the Big Three, but, with a secured government loan attached, is still a better option than going it alone.
Although Congress still appears fairly split on the matter, Chrysler and GM need a ruling on the matter within days, so stay tuned for a ruling within the next couple of days.
