Source says U.S. Treasury has no plans for GM bankruptcy next week, maybe later

According to sources that are usually never authorized to speak publicly on matters but always do, a report by the Washington Post that the U.S. Treasury Department is planning a bankruptcy filing for GM next week hold no weight.

The source told Reuters that the Treasury has no plans to force GM into a bankruptcy filing next week and that the outcome of the company’s restructuring efforts will remain mostly unknown until its June 1 government-imposed deadline.

The Washington Post said that the Treasury would “steer” GM into a bankruptcy next week and would provide it with $30 billion in new federal loans (which we’re sure would have taxpayers up in arms).

– By: Omar Rana

Source: Reuters