Steven Rattner: Bankruptcy not our goal for the automakers

Steven Rattner, the U.S. Treasury’s main advisor when it comes to the automotive industry, said today that Obama’s auto task force is avoiding bankruptcy as an option for GM and Chrysler. The news comes just days after the auto task force hired bankruptcy lawyer Matthew Feldman to advise it on its options.

“Bankruptcy is not our goal,” Rattner said in an interview with Detroit Free Press. “I”ve been in and around bankruptcy for 26 years as part of my private-sector work. It is never a good outcome for any company, and it”s never a first choice.”

Rattner said that even though bankruptcy is “sometimes necessary in order to solve problems,” the auto task force is focused on solving the auto industry problem outside bankruptcy.

He said that the auto task force is moving quickly to meet the March 31 deadline but said that decision on additional government loans for GM and Chrysler could come at a later date. Both automakers are seeking an additional $21.6 billion in aid.

– By: Omar Rana

Source: Detroit Free Press