Bankruptcy professor Mark Roe

suggests bankruptcy might be good for GM:

While holdouts can unravel a recapitalization outside of bankruptcy, inside Chapter 11 bondholders vote on the plan. If a majority of GM's bondholders (actually those holding two-thirds of the bonds by dollar value) think the deal is good enough, it applies to all of them.

There are other reasons why a Chapter 11 resolution may be the best solution for GM. Bankruptcy may be the only way for GM to fully confront its operational problems, deal with its legacy costs, reconfigure its dealer network, and achieve a viable labor agreement.

But one issue that has not been discussed much is that bankruptcy usually leads to a sharp change in management. There are turnaround teams expert at restructuring troubled companies, and they may well be more effective than GM's current management. It's no surprise GM's management isn't advertising this fact, but taxpayers and the government should know about it.