Moody's: Government-backed Bankruptcy Likely For Automakers
[Time to end my Ford pick.]
SAN FRANCISCO -- Moody's Investors Service on Tuesday said there is a 70% chance that the U.S. government will provide financial assistance in a prepackaged bankruptcy scenario for the domestic automakers. The credit ratings agency put the probability of a government bailout without bankruptcy at 25%. A "freefall bankruptcy" with no federal lifeline has only a 5% chance of taking place, according to Moody's. General Motors Corp. shares rose almost 4% to $4.24 in midmorning trades while Ford Motor Co. was mostly flat at $3.18.
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