GM Scrambles To Save Company, But Bankruptcy Likely

May 11, 2009

Michigan (ChattahBox) – Auto manufacturer General Motors is in a mad dash to complete the government required restructure outlined in the federal bailout given, before they are forced into bankruptcy.

GM has three weeks to convince bondholders to buy their quickly falling stock to make up for a $27 billion loss, close a number of dealers, close a large fraction of their factories, and other measures that were established by the federal government as conditions to receiving a $15.4 billion dollar bail out.

“I just don’t see how it’s possible, given all of the pieces,” Seton Hall professor Stephen J. Lubben told reporters.

It certainly is a tall order, but one that has to be filled if GM wants to avoid bankruptcy, a potentially devastating move in an already more than shaky economy.

However, the company’s chief executive, Fritz Henderson, says that they will do what needs to be done, regardless of what that action may end up being.

“If we need to pursue bankruptcy, we will make sure that we do it in an expeditious fashion,” he said in an official statement last week.

β€œThe exact strategies I’m not getting into today, but we’ll be ready to go if that’s required.”


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