For Romney in November 2008 to suggest government guarantees for any lender willing to put up the money for DIP financing of GM and Chrysler now appears wildly impossible. In 2009, syndicated DIP loans to U.S. borrowers hit $20.82 billion -- still just 28.9% of what GM and Chrysler required.
What Did Romney Really Say?
Father George Romney in 1954 became chief executive of the former American Motors Corp. and successfully revamped the brand, but Mitt disgruntled much of the automotive industry in 2008 when he suggested to let the major players (including eventual American Motors' acquirer Chrysler) go into bankruptcy.
The election 2012 uproar, though, could be attributed to a misunderstanding of bankruptcy.
"Bankruptcy doesn't mean liquidation. Bankruptcy can mean that the company comes out the other end, and that's exactly what happened with GM," said Brent Horton, a law professor at Fordham University who
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