Bankruptcy will move the legacy costs - pension and healthcare - to the government. These account for well over 2/3 of debt on the automaker’s balance sheets.

The Pension Benefit Guarantee Corporation’s monthly pension maxes out at $4,500 this year. PBGC does not cover medical coverage at all. UAW reitrees will get straight medicare.

The stockholders get wiped out and the bond holders - who were willing to take a 2/3 haircut if labor gave significant cuts - will be at the head of the line.

They should have did this last fall.