Why not bankruptcy for GM?

Life could be better for it and its suppliers. For one thing and an important thing, management would likely change and it is doubtful that new management could be worse. Mark Roe, who teaches bankruptcy at Harvard Law, suggests that bankruptcy may be the best thing for GM because, at last, it would force the company to finally try to resolve its fundamental problems with regards to labor, legacy costs, operations and the dealer network.

It's unlikely that bankruptcy would turn off suppliers, as vital suppliers are among the first that the judge orders to be paid. And settling with bondholders is a lot easier in bankruptcy as it's much more difficult for a few bondholders to scuttle a deal when GM is in Chapter 11.