The GM CEO says the bankruptcy is now 'probable'

Posted on Saturday, 18 April 2009 , 14:04:12 byEmil

Filed under gmceobankruptcychrysleruawcawllcfiatGMChryslerFiat

The GM CEO says the bankruptcy is now 'probable'

Speaking this morning with the reporters in a conference call, Fritz Henderson CEO confirmed this: a bankruptcy filing right for the struggling automaker from Detroit is the probable outcome, not preferred. General Motors is under a hard deadline for restructuring by 1st of June or else it will be losing access to the low-interest loans of the government. 'Our preference remains to accomplish this outside of bankruptcy' Henderson said to the reporters on this conference call.

Henderson affirmed GM is not resting. The carmaker's working hard over the restructuring plans, that it could be public later this month. 'Contingency planning is under way' he affirmed. 'We are on several tracks'. 'I felt several weeks ago that it would be more probable that we would need to go through a bankruptcy process. I certainly feel that way; that continues today. I wouldn’t be able to hazard a guess as to what the probabilities would be'.

GM has not debuted serious discussions involving its unions right since crosstown competitor Chrysler LLC's under a stricter deadline. The unions and Chrysler agree with Fiat in April or lose its access to the loan program of the government. Henderson affirmed that the carmaker will start ramping up in May the UAW – CAW negotiations.