Bankruptcy Still Likely for GM, CEO Says

April 17, 2009 - 3:58 PM
General Motors Corp. Chief Executive Fritz Henderson says bankruptcy isn't the company's preferred option, but it's still probable, given the restructuring goals GM must meet to get more government loans.
Detroit (AP) - General Motors Corp. Chief Executive Fritz Henderson says bankruptcy isn't the company's preferred option, but it's still probable, given the restructuring goals GM must meet to get more government loans.
 
In a conference call with reporters Friday, Henderson said GM is working on two parallel plans: one that involves bankruptcy and one that doesn't.
 
GM has already received $13.4 billion in aid, and it must meet strict requirements to cut labor costs and debt by a June 1 deadline. Henderson says the company will be prepared to file for bankruptcy if it is unable to reach those goals out of court.
 
Henderson also says the company will not sell its ACDelco parts division.