Originally Posted by blue2fire
Porshuh the car company is to become a subsidiary of VW but Porshuh the holding company retains majority ownership of VW itself.
This deal is only to get rid of the massive tab they'd run up trying to acquire 75% of VW (the percent at which German law says that you can declare it a subsidiary).
When your debt exceeds your assets that defines bankruptcy. At this point the debt is so huge they have to merge with VW to viable. Without VW's cash they would be looking at a restructure.
EDIT: Today's WSJ: Porsche takes a 7.1 Billion Dollar hit on VW option sales. "Porsche now is in talks to be effectively taken over by VW"