1. General Motors (GM) is the largest US-based automobile manufacturer. Why did GM file for bankruptcy in 2009 under Chapter 11, and not Chapter 7 or Chapter 13? (The table on p. 432 of the textbook may be helpful to you in responding to this question). Commentators at the time (as reported by BloombergLinks to an external site.; GM Files for Bankruptcy.pdf Download GM Files for Bankruptcy.pdf) noted that bankruptcy allowed GM to accomplish things that were difficult or impossible for the Company to accomplish otherwise. What were some of those things?
2. Pacific Gas and Electric (PG&E) is the utility provider of natural gas and electricity to most of the Bay Area (including Foothill College). What are the reasons for PG&E's 2019 bankruptcy filing, according to the company's press releaseLinks to an external site. (PG&E Press Release Jan 14 2019.pdf Download PG&E Press Release Jan 14 2019.pdf) announcing the filing? What is the view of the company's critics, as reported by The LA TimesLinks to an external site.(LA Times 1-24-19 PGE hasnt run out of money so why is it planning to file for bankruptcy.pdfDownload LA Times 1-24-19 PGE hasnt run out of money so why is it planning to file for bankruptcy.pdf)? Whom (the Company or its critics) do you find more persuasive, and why?
3. What is the difference between a Secured Claim, a Priority Claim and an Unsecured Claim (see pp. 436-37 of the textbook)? Which kind gets paid first? If you file for bankruptcy while owing $25,000 on your Visa credit card, what kind of claim will Visa likely have?

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General Motors GM Bankruptcy in 2009 General Motors filed for bankruptcy in 2009 under Chapter 11 of the US Bankruptcy Code instead of Chapter 7 or Ch... View the full answer