Randy Picker on GM Bankruptcy

History Shows Corporations Can Survive Bankruptcy
Brian Tumulty
USA Today
June 1, 2009

Can General Motors file for bankruptcy and re-emerge from Chapter 11 as a profitable and viable automaker?

Other major American companies such as Texaco, Dow Corning, Delta Airlines and United Airlines have filed for Chapter 11 reorganization and successfully exited.

GM enters the process, according to bankruptcy experts, with the most important element needed for an eventual exit - an outside source of financing going forward.

In GM's case, that source is named Uncle Sam.

"What is distinctive about this situation is that the government is behind GM," said Randal Picker, a professor of commercial law at the University of Chicago Law School. "The government is ready to step up and do that."

Randal C. Picker