Back in December when I was test blogging, I wrote a piece that the US government should hire restructuring advisors and bankruptcy lawyers to advise it on how to deal with the automotive industry. I said this should have been done in conjunction with and as part of the extension of the loans.
Apparently according to this Bloomberg article, Obama has hired restructuring advisors and bankruptcy lawyers. Excellent!!!
Unfortunately, the Bush team didn't hire professionals apparently. The Obama advisors and lawyers are now going over the loan documents to see just where loans already extended to GM and Chrysler sit relative to both companies other debt.
So, why wasn't this debt put in senior to existing debt?
Why doesn't the loan provide that the auto companies that receive the loans, pay for the Governments advisors? This is how it works in the real world.
Back to the advisors, this is a great move by the Obama team and great for the taxpayers.
Cheers, Mike
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