Speed would be key in any reorganisation of General Motors if it were to file for Chapter 11, according to one bankruptcy expert.
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Mark Collins, director of Richards, Layton & Finger in Wilmington, Delaware, and a bankruptcy lawyer was quoted by Reuters today speaking at a panel discussion in the US.
He told the panel, hosted by the ABF Journal and the New York Institute of Credit, that a bankrupt General Motors could be reorganised in as little as a month.
GM would have to reach agreement with most parties prior to filing and then move its healthy operations quickly to a new entity that is free of pre-bankruptcy liabilities, he said.
Meanwhile, Kevin Gross, a judge for Delaware’s bankruptcy court, told the panel that GM would have to be out of Chapter 11 in 30 to 60 days.
“It would open a tremendous sinkhole (in the economy) not to make it happen,” Reuters quoted him saying.
