Though General Motors denies it and continues to claim that it can restructure itself to weather the financial crisis, the U.S. government thinks otherwise. In fact, the US Treasury Department has told General Motors to make all necessary preparations for a possible bankruptcy filing by June 1.
Citing unnamed people “with knowledge of the plans,” the instructions had been conveyed by members of President Barack Obama?s automotive task force, who spent last week in meetings and on conference calls with GM in Detroit and Washington.
The automaker already has been granted 13.4 billion dollars in federal aid, and its managers are insisting the company’s image should not be damaged. The preparations are aimed at assuring a GM bankruptcy filing is ready should the company be unable to reach agreement with bondholders to exchange roughly 28 billion dollars in debt into equity in GM and with the United Automobile Workers union, which has balked at granting concessions without sacrifices from bondholders.
(Source) AFP
Tags: automobile workers, bankruptcy filing, Barack Obama, billion dollars, bondholders, concessions, financial crisis, General Motors, GM, necessary preparations, us treasury department, workers union
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Damn that’s too bad.
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[...] recently been told by the government to prepare for a June 1st bankruptcy filing, GM has yet another problem on their hands. Recently issuing a recall for a staggering 1.5 million [...]