The attorney general of Michigan thinks that if GM or Chrysler file for bankruptcy protection, they should do so in the state of Michigan. Seems he sent a letter (PDF) to the two companies about that. This is my favorite part:
I am gravely concerned about the impact of any bankruptcy filing in a jurisdiction outside Michigan. Since Billy Durant formed the General Motors Company in 1908, Michigan has been GM’s home. Michigan is the site of your corporate headquarters, most of your manufacturing facilities, hundreds of thousands of your active and retired employees, and home to the vast majority of your suppliers and their employees. The financial health of General Motors and Michigan has been intertwined for decades. Accordingly, any potential bankruptcy filing outside the State of Michigan seems bizarre. More importantly, such a filing would inconvenience and unfairly impact the vast majority of your creditors who are located in Michigan. The costs for many of these creditors to participate in a New York or Delaware bankruptcy is overwhelming and would undoubtedly lead to unjust results. I am confident that you, as a lifelong Michigander and the leader of one of Michigan’s most beloved institutions, would want to avoid that potential outcome.
Sounds similar to something I’ve read before.
Barbara!
