If GM does a Chapter 11, they would need, as companies in bankruptcy often do, debtor-in-possession financing to get them through the reorg. Such debt is low risk because it comes before all other debt, but given how much GM would need and the frozen credit markets, it’s doubtful they could get it. And without, they probably can’t pay suppliers, who are also hurting badly.
Of course, a bailout could just prolong the process, rather than solving it.
