By pursuing an asset sale, G.M. could be assured of greater speed, certainty and the ability to shed unwanted liabilities, Mr. Wilson said.
The plan is for the government to provide debtor-in-possession financing to allow the company to continue its day-to-day operations, but also to have everything in place to allow for a rapid split between a "good" GM, which would acquire all the viable assets, and a "bad" GM into which all the unwanted liabilities, from debt to product-defect and asbestos-damage claims, would be loaded.
A court filing would allow Chrysler-Fiat to begin with a fresh slate, free of unwanted liabilities like dealer franchise agreements.
Such a bankruptcy for Chrysler would test the administration's theory that a major carmaker could undergo a "quick rinse" in court, shedding unwanted liabilities, and emerge as a smaller but healthier company.
By the end of the month, isolate the costs and determine what amount of cash has gone under what heads and decrease the spending on unwanted liabilities.
Bankruptcy should also make it easier for the "new" Chrysler to shed unwanted dealers and other liabilities.
A government-backed bankruptcy process could be used to discard G.M.'s liabilities and unwanted assets and produce a profitable, albeit smaller, car company.
Chrysler, which completed a government-backed restructuring this month, left both product liability claims and unwanted dealers with its old estate, now known as Old CarCo.
Its pit stop in bankruptcy allowed it to shed thousands of workers, billions of dollars in pension and healthcare liabilities, underperforming factories, unwanted dealerships and four of its eight brands, including Pontiac, Saturn and the notorious gas-guzzler Hummer.
Any invitation to Georgia carries great liabilities and portends unwanted consequences: Two regional states -- Abkhazia and South Ossetia -- have already broken away from Georgia with Moscow's support.
