Moultrie Observer

Local News

December 16, 2008

Chambliss prefers a structured bankruptcy plan

MOULTRIE — A structured bankruptcy would be the best way to save the nation’s embattled automakers, U.S. Sen. Saxby Chambliss said Tuesday.

Chambliss, R-Ga., discussed the failed loan package that tanked last week when by a 52-35 vote the Senate failed to bring up for consideration a $14 billion loan package for U.S. automakers. Earlier Chambliss addressed a joint meeting of Kiwanis and Rotary Club members at Sunset Country Club.

“I am opposed to giving these companies money for the single reason the business model under which they operate is in trouble,” Chambliss, one of 32 Republicans who voted against ending debate on legislation, said during an interview following the Tuesday program. “Until they go through internal restructuring (they are) not going to be able to pay us back.”

Chambliss said that automakers’ creditors were willing to make concessions, and management of the companies was willing to restructure but that the automakers’ union was unwilling to make concessions.

“I think some sort of pre-structured Chapter 11 (bankruptcy) would be ideal for the manufacturers,” Chambliss said. “The people I’m concerned about are the dealers.”

A better use of the millions of dollars would be freeing up credit for people to purchase autos, Chambliss said.

“Credit is a major issue,” he said. “The credit sort of constricted to the point where people can’t get loans to buy cars.”

A United Auto Workers spokesman did not return a call Tuesday seeking comment.

The $700 financial package passed by Congress has helped somewhat in loosening credit, he said.

Tight credit also could be a problem for farmers next year as they get ready to plant crops, Chambliss said. The farm bill written this year should help give banks confidence that farmers can repay loans, and the Farm Credit Service also will be able to extend loans.

Text Only
Local News
Business Marquee
AP Video
Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites Anti-violence Advocate Killed, but Not Silenced. Dempsey: Putin May Light Fire and Lose Control Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman
House Ads
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Seasonal Content

Should the U.S. negotiate with groups it considers terrorists?

No. Never.
Generally no, but prisoner exchanges are an exception.
Negotiation will be required to end the conflicts we have with those groups.
     View Results