Senate Has New Bailout Bill Proposition
While the Big Three are still waiting for a rescue solution the senate doesn’t seem that ready to offer an easy one. The Republicans are opposing the Democrats on this one so Senate Majority Leader Harry Reid told them to offer their own version of a rescue plan. And that’s what Republican Senator Bob Corker just did. Here’s what he’s asking from the Detroit automakers in exchange for that $14 billion:
- Convert at least two-thirds of their creditors’ debt to equity by March 31st, or either repay the loans or file for bankruptcy.
- UAW workers must accept the same pay, benefits and work rules as employees of import-brand factories.
- Half of Detroit automakers’ payments into the UAW-administered VEBA funds for retired workers must be made in stock rather than cash.
While the House has passed the Bailout Bill, the Democrats don’t have the required 60 votes to pass it yet. What will happen next? Will the Republican solution work? We’ll just have to wait some more!
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