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(WASHINGTON) The Bush administration is seriously considering 'orderly' bankruptcy as a way of dealing with the desperately ailing US car industry.
Said White House press secretary Dana Perino yesterday: 'There's an orderly way to do bankruptcies that provides for more of a soft landing. I think that's what we would be talking about.'
President George W Bush, asked about a car rescue plan during an appearance before a private group, said that he had not decided what he would do. But he, like Ms Perino, spoke of the idea of bankruptcies organised by the federal government as a possible way to go.
'Under normal circumstances, no question, bankruptcy court is the best way to work through credit and debt and restructuring,' he said. 'These aren't normal circumstances. That's the problem.'
Ms Perino said: 'The president is not going to allow a disorderly collapse of the companies. A disorderly collapse would be something very chaotic that is a shock to the system.'
She said that the White House was close to a decision and emphasised that there were still several possible approaches to assisting the carmakers, such as short-term loans out of a US$700 billion Wall Street rescue fund. -- AP
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