GM Preparing For Bankruptcy As Deadline Nears

The source, who spoke on the condition of anonymity, said GM still hopes to win concessions from its creditors and unions that will allow it to avoid bankruptcy. But the June 1 deadline given to the company by President Obama and the Treasury Department to reach deals or go into bankruptcy has caused a pick-up in preparations, the source said.

"We're talking about what could be the largest industrial company to ever go bankrupt. The preparations better be intense and earnest," the source said. "The preparations are being made because there's a short time frame here."


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richardposluszny - 4/7/2009 2:40:11 PM

+1 Boost

Good call, I was just about to post this article myself.

Agent009 - 4/7/2009 2:47:38 PM

+2 Boost

of course if you asked Rick Wagoner...he would still say bankruptcy is not an option.

monkeyrun - 4/7/2009 4:04:11 PM

+1 Boost

He did get fired, so this might not be his plan all along.

BigShow50 - 4/7/2009 4:08:08 PM

+3 Boost

LMFAO!!!...GM knew bankuptcy was the only option since Oct/Nov. of last year...they are just using whitehouse money to compound a problem that will never be resolved by GM(called "trying to save face!")...what a concept!!!...But then a again give GM credit for a "banko-concept" that actually makes sense and for once a concept that goes into production by GM and GM only!!!...LMFAO!!!

Agent009 - 4/7/2009 4:37:47 PM

+2 Boost

Well GM has been in denial for several years. But they gambled on short term profit with a lack of vision for the future. That philosophy failed them and they will now pay the price.

If I failed to save and time it came to retire, the federal government shouldn't bail me out either.

Whelan - 4/7/2009 5:00:23 PM

+1 Boost

GM is going to be owned by the government and...oh wait, they already pretty much are. Then they can change the name to Government Motors, keep the logo and make nothing but eco-friendly electric cars that come in colors like Daisy petal and Green Grass. Just like Obama planned.

It's part of the plan, mark my words, the company will be government owned just like some foreign autos are.

investor27 - 4/7/2009 10:16:27 PM

+5 Boost

I knew the UAW would rather let GM go out of business than to do the right thing. UAW's motto is to never concede, and rather die before conceding a single penny. They have to do this, because they are betting heavily that one or two of the Big Three will survive and the UAW will live on. We need to shut these guys down for good. It's Jimmy Hoffa all over again.

freeagent - 4/7/2009 10:18:39 PM

+2 Boost

Romney was right all along and now, after wasting billions, months of dithering, and compounding the additional loss of customer goodwill and patience, the inevitable is upon us. Let just hope that someone within this inept group has the stomach and clarity to assemble a viable business plan.

roundwego - 4/8/2009 7:49:05 AM

-1 Boost

Hopefully they can restructure successfully and come back leaner and meaner. they already have the product.

mini22 - 4/8/2009 1:35:51 PM

+1 Boost

Since the government is going to back the warrantees then it seems a no brainer that GM should to the managed bankruptsy. The UAW and the bondholders will not agree to the cuts GM is asking for so a BK is the only viable way for GM to restructure. Chevy,Caddilac,Buick and GMC will be the good GM.Saab,Opel Hummer,Saturn will be the bad GM. Pontiac will be either shut down or reduced to a few image cars.Buick might be sold to the Chinese. I think GM should start proceedings asap and get it over with.