Rick Wagoner acknowledges that pre-planned bankruptcy could work

Speaking to a group of reporters during a breakfast sponsored by the Christian Science Monitor, GM CEO Rick Wagoner said that restructuring the company outside of bankruptcy court is the best option. However, Wagoner acknowledged that a pre-planned bankruptcy filing could work.

“If we can accomplish 99 percent outside of court that we would inside of court, why in the world wouldn’t we do it outside of court? To save the risk and, by the way, at a much lower expense,” Wagoner said. “I think it makes sense for everyones perspective to do this outside of court. We have to show we can do that though.”

The GM CEO said that the company has been studying pre-packaged bankruptcy filing which could see the company emerge in 30 or 60 days. Wagoner said that if that doesn’t happen, the move could mean a long period of bankruptcy where GM would eventually have to liquidate.

He said that General Motors executives are in daily contact with Obama’s auto task force and have been working with the UAW and bondholders on necessary concessions to make the company viable once again.

– By: Omar Rana

Source: Detroit News