Report: U.S. Treasury asks GM to prepare for bankruptcy filing by June 1

Posted: Apr 13, 2009
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According to a report by The New York Times, the U.S. Treasury Department is asking General Motors to prepare for a bankruptcy filing by June 1. Sources familiar with the matter said that the goal is to prepare the company for a fast “surgical” bankruptcy.

The company’s new CEO Fritz Henderson said that he still believes that General Motors can restructure without going into bankruptcy but said that a quick “surgical” bankruptcy is something that he’s willing to consider.

The preparations are being pursued to assure a bankruptcy filing if GM is unable to reach agreement with bondholders to exchange $28 billion in debut into equity and an agreement with the UAW, which has openly said that it won’t make concessions unless the bondholders do.

Talks between the Obama automotive task force and GM officials are expected to continue this week.

- By: The Daily Auto Editor

Source: NYT


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  • zermatt

    Fritz – that's it.

    The good GM is still bad. It doesn't need GMC and Chevrolet trucks and a limited Pontiac. Also, won't all of Buick's buyers be dead by 2020?

    Trim it to Chevy and Cadillac and that should be all that is needed. That would be a GOOD new start for GM.

  • Pat

    do the bankruptcy thing and stop wasting our time and money..please henderson you're more logical than wagoner

  • zermatt

    Fritz – that's it.

    The good GM is still bad. It doesn't need GMC and Chevrolet trucks and a limited Pontiac. Also, won't all of Buick's buyers be dead by 2020?

    Trim it to Chevy and Cadillac and that should be all that is needed. That would be a GOOD new start for GM.

  • Pat

    do the bankruptcy thing and stop wasting our time and money..please henderson you're more logical than wagoner