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Obama to Avoid Auto Bankruptcies - WSJ.com

The leaders of President Barack Obama's auto task force are focused on restructuring General Motors Corp. and Chrysler LLC outside of bankruptcy court, despite suggestions from some experts that a Chapter 11 filing would be the best way to revamp their troubled operations.
Steven Rattner, a private-equity executive leading the team, said Monday that "I don't think that bankruptcy is necessarily a better place for any company."
"It sometimes becomes a necessary place for some companies, but it's certainly not a desired place and it is certainly not our goal to see these companies in bankruptcy, particularly considering the consumer-facing nature of their businesses," Mr. Rattner said in an interview.
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Administration officials also said the team doesn't plan to recall early the $17.4 billion in government loans given to GM and Chrysler -- something allowed under the loans' terms if the companies don't prove by March 31 that they can be viable long term.
The administration officials said the two auto makers had already spent the cash, and that asking for the funds to be returned immediately would trigger their collapse

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