Are Ford and GM Bankrupt Companies?

An interesting article in Fortune about the likely bankruptcy of GM and Ford… a few key excerpts:

The bottom line is, in order for GM to survive, it needs to make rapid, substantial gains in profitability. Of course, this was just as true three years ago as it is today, and the results speak for themselves. Whatever its massive PR machine may say, GM is already effectively bankrupt. All that remains is for the company to admit it…

In sum, Ford and GM are both effectively bankrupt. Whether they end up declaring Chapter 11, or undergo a massive “restructuring” that amounts to the same thing, is hardly material. The only real question is Which will go first?

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