Wednesday, December 10, 2008

WSJ: Auto Bailout Deal Reached

by Calculated Risk on 12/10/2008 12:53:00 AM

From the WSJ: Washington Maps Pact for Bailout of Big Three

The White House and top Democrats on Capitol Hill reached agreement in principle on a sweeping rescue package for the nation's auto makers ... The bill would provide short-term funds, expected to total about $15 billion ...

[A]n auto czar ... would bring together labor, management, creditors and parts suppliers to negotiate a long-term restructuring plan ... if a company and its stakeholders can't agree on a plan, the czar would be required to recommend one, including the possibility of a Chapter 11 bankruptcy reorganization.

The plans would have to be in place by March 31.