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Automaker Chapter 11 Filing Better for Taxpayers and Companies than Government Bailout According to Latest ABI Quick Poll

Contact: John Hartgen
               (703) 739-0800
               jhartgen@abiworld.org

 

AUTOMAKER CHAPTER 11 FILING BETTER FOR TAXPAYERS AND COMPANIES THAN GOVERNMENT BAILOUT, ACCORDING TO LATEST ABI QUICK POLL

December 19, 2008, Alexandria, Va. — A majority of respondents (86 percent) in a recent ABI Quick Poll agreed that a chapter 11 filing is better for the taxpayers and companies than a government bailout of the auto industry. Sixty-five percent of respondents “strongly agreed” and 21 percent “somewhat agreed.”

Ten percent of respondents did not think that a chapter 11 filing would be more beneficial to taxpayers and companies than a government bailout of the auto industry. Six percent “disagreed strongly” and 4 percent “somewhat disagreed” that a chapter 11 bankruptcy filing is better for taxpayers and companies than a government bailout of the auto industry. Two percent of respondents did not know or had no opinion on the issue.

The Quick Poll was based on the recent discussions on Capitol Hill to explore ways to provide relief to the struggling U.S. automakers. U.S. automakers such as General Motors have stated that they would run out of funding by the end of the December if they did not receive government aid. Despite swift passage in the House of Representatives, legislation providing a financial bailout for U.S. automakers failed in the Senate on Dec. 12. Many lawmakers were critical of the automaker bailout package, saying that bankruptcy provided the best method for the automakers to reorganize their businesses. The Bush Administration announced today that U.S. automakers will receive $13.4 billion in loans through the Troubled Asset Relief Program in exchange for substantially restructuring their businesses.

ABI members and members of the public were welcome to submit their response to the statement: “A chapter 11 bankruptcy is better for the taxpayers and the companies than a government bailout of the auto industry.”

ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.