Would it be better all round if the two troubled US car giants, Chrysler and General Motors, go into bankruptcy?
Both are teetering between restructuring and going bust. With regard to debt, although, Chrysler's main lenders have accepted $2bn cash in lieu of $7bn secured debt, GM's more diverse lenders have not proved so easy to get together in one agreement. With regard to other obligations, both companies have contracts to fulfil with a network of dealerships which is just too big for the current market.
Bankruptcy would have its advantages for the companies: not least, the protection afforded would enable them to downscale operations, reducing the number of dealerships with fewer legal repercussions.
