Bankruptcy Watch – GM/Chrysler

AFP (the French news service) is reporting that the US Treasury is talking to potential banks (CitiGroup?) that might provide what is called “Debtor in Posession” financing – it is the funds used to keep a company “alive” while it goes through the bankrupcty process.    The DIP stands first in line to gets its money back when/if the company comes out of Chapter 11.  Obama administration officials are quoted as saying “everything is on the table now”.

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