US Congress asks automakers to submit credible restructuring plan

Democratic congressional leaders have told the big three Detroit's automakers to come up with a credible, viable, long term restructuring plan by 2 December to justify to the government in giving them the lifeline of $25 billion of taxpayer's money.

House speaker, Nancy Pelosi and senate majority leader, Harry Reid sent the letter just as the board of director's of General Motors was huddled up in a meeting, mulling about filing chapter 11.

Congressional leaders were aghast that the big three automakers came to the congressional hearing by flying in their corporate jets, which was bad enough when they had come with a hat in hand, but what was worse they had no plans as to how they were going to spend the $25 billion they were asking as bailout in making their companies viable in the future.

The Democratic congressional leaders have asked the Detroit automakers for detailed data and have listed out many conditions if the congress has to consider giving them the lifeline which they need desperately.

The letter demands, among other things:

A forthright, documented assessment of the auto companies current operating cash position, short-term liquidity needs to continue operations as a going-concern, and how they will meet the financing needs associated with the plan to ensure the companies long-term viability as they retool for the future;