Would a G.M. Bankruptcy Save Taxpayer Money? | WHAT REALLY HAPPENED

Would a G.M. Bankruptcy Save Taxpayer Money?

The New York Times Business Michael J. de la Merced Feb 16, 2009

It is a stance that Mr. Altman, who is the director of N.Y.U.’s credit and debt markets research program, has publicly espoused for some time. Chief among his concerns now, however, is not only reaching a way to restructure G.M. and Chrysler in the least painful way for the companies, but also to protect the billions of dollars in government money lent to the companies.

The $13.4 billion that G.M. received in December was made in a way that ensures that the government is what is known as a senior secured lender, with assets backing up the loan.

“Basically, the idea is that we’re going to stop throwing good money after bad,” he said. “I think it’s very important that the government take a stand on this somewhere. Otherwise, it’s going to continue.”