Martin Whitman bought into General Motors Senior Unsecureds during the last quarter. He discussed the possible reorganization of GM: "It seems odds on that General Motors (GM, Financial) has to reorganize if it is to solve its problems with burdensome legacy costs - pensions and health care; and also rationalize its wage, hour and working condition contracts with its principal union. There are two ways a distressed company can reorganize, i.e., restructure its obligations - voluntary exchanges, or Chapter 11 of the Bankruptcy Code. Though not without business risks a Chapter 11 case probably would be the easiest way for General Motors to solve its legacy cost and labor cost problems."
http://www.thirdavenuefunds.com/taf/documents/shareholderletters/aboutus-letters-06Q1.pdf
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http://www.thirdavenuefunds.com/taf/documents/shareholderletters/aboutus-letters-06Q1.pdf
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