« Interchange Legislation Overview | Main | A Final Thought on the Chrysler Sale »

Next Up, Ford

posted by John Pottow

So now that Chrysler's closed and GM's speeding along, where does that leave Ford? Well, with still about $30B in debt for starters. But this raises a theme in corporate bankruptcy of dominated industries like automotive and airlines. Will Ford be "forced" to file out of an economic peer pressure?

My initial hunch -- and it's just a hunch -- is no, at least not yet. Among other reasons, I'm just recalling the airline rhetoric earlier this decade about how all the airlines would have to follow United in. But they didn't all go in, did they?  I think American stayed out -- and has its restructuring been impeded, or is it still holding its own (since it was able to use the filers' labor negotiations to its piggyback benefit presumably)? Won't this be the same with Ford? 

Comments

And bear in mind the amount of stock held by the Ford family. I think they'll be even less likely to consider the bankruptcy alternative because they'd be wiping out so much of the family's wealth.

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad