"The UAW has been dragging its feet, assuming that a Democrat-controlled federal government will not eat its own by abandoning labor. GM's creditors are making sure that the restructuring of the auto companies will fail. They are doing so by ignoring the mandate from Congress to take less than $1 for $1 on the debt obligations of The Big Three."
According to the FT, 'General Motors has signaled it might be unable to meet a key condition of the $13.4bn lifeline extended by the US Treasury requiring a two-thirds reduction in the carmaker’s unsecured debt.'
The intransigence of the UAW and GM bond-holders could put both the company and the new administration in a position to make good on their threat of throwing the corporations into bankruptcy court by violating their agreement to have cost cuts in place by the end of March. But,that won't happen."