Lots of corners were cut, laws and rules ignored for political reasons.
Bondholders, among others, got zip.
The president wanted it over quickly, wanted the unions to come out on top.
Now, it seems, not all of the maneuvering was done in the open – at least, open enough for the presiding Judge to know all the facts.
There is nothing wrong with negotiating with your creditors before filing Chapter 11.
However, bribing them, when you are, by definition, not able to pay all your bills, is a big problem.
Bankruptcy laws in Canada are vastly different from ours. If GM Canada had been forced into bankruptcy in Canada, the quick in and out of the US GM Chapter 11 could not have occurred.
GM was well aware of this problem.
What to do?