GM split into two groups, liquidate one of them, and Survive?

[Bruce Nunnally]

[Motortrend]

Under this plan, the viable half of GM would consist of its so-called the core brands -- Chevrolet, Cadillac, GMC and Buick -- while the junk half of GM would consist of Hummer, Saturn and any other facilities or parts of GM that need to be gotten rid of. The viable half would reorganize under Chapter 11 rules with the government's backing while the junk half would be liquidated and have its assets sold off. GM would convert much of its $60 billion in debt to equity and creditors could take a stake in the viable company while accepting proceeds from the sale of the assets of the junk company.

This strategy would allow GM to dump much of the dead weight that is pulling the company down and would likely protect it from lawsuits by dealers, as they'd have trouble suing the half of GM that is being liquidated and is no longer a part of the viable GM. Being in bankruptcy might also give GM more leverage with its bondholders and with the UAW.