Pocono News Section

GM - Bailout or Bankruptcy?

GM - Bailout or Bankruptcy? - Friday, March 6, 2009 at 7:55PM EST

WILKES-BARRE --- Auditors say even if General Motors receives all the $30 billion it hopes to borrow from the federal government it's survival is doubtful.
GM could be forced to file for bankruptcy in a number of situations. Failure to get more federal aid would mean the government would seek their initial $13 billion back, money GM says it doesn't have. If GM fails to exact concessions from stockholders and the United Automobile Workers union bankruptcy may be it's only option. If the U-S automobile market continues to spiral downward, the company's restructuring plan won't be viable.

The auto giant says it has analyzed various bankruptcy scenarios and favors a government backed bankruptcy among it's options.

President Barack Obama's auto task force has been meeting and considering what the government's next move should be in dealing with GM.

Should more taxpayer money be offered to assist GM? Should the company be allowed to fail?

WYOU Interactive discusses the options and their possible repercussions with Fred Croop of Misericordia University.