DETROIT — Bankruptcy protGeneral Motors Corp. CEO Fritz Henderson still is holding out hope that the company can restructure without court protection, but he says the tasks to complete before a June 1 government-imposed deadline are large.
The automaker, Henderson said, is looking at its operations country-by-country to determine where it might have file for bankruptcy.
"Certainly the task that we have in front of us is large,” Henderson said during a conference call. "There is still an opportunity and still a chance for it to be done outside of a court process.”
GM shares fell 17 cents, or 10.6 percent, to close at $1.44.
Deadline nears
General Motors has received $15.4 billion in federal loans, and the government deadline to restructure or seek Chapter 11 protection is just over two weeks away.
However, the company must reach concessionary agreements with unions, persuade thousands of bondholders to exchange $27 billion in debt for 10 percent of GM’s stock, cut thousands of dealers, close plants and lay off more salaried workers.
Under Chapter 11 reorganization, a company can stay in operation under court protection while sheds debts and unprofitable assets to emerge in a stronger financial position.
Also Monday, Henderson left open the possibility that GM would move its corporate headquarters out of Detroit.
The company, he said, is looking at everything within its business.
He would not comment about reports about Fiat Group SpA’s interest in getting 80 percent of GM’s European Opel operations, saying that any structure must address the needs of both partners.
Henderson said GM has an urgent need for funding from the German government, so any partner for its European operations would have to be suitable to the government.
Section for the nation’s biggest automaker is becoming more probable with a deadline just over two weeks away, the company’s top executive told reporters Monday.
by the associated press
The automaker, Henderson said, is looking at its operations country-by-country to determine where it might have file for bankruptcy.
"Certainly the task that we have in front of us is large,” Henderson said during a conference call. "There is still an opportunity and still a chance for it to be done outside of a court process.”
GM shares fell 17 cents, or 10.6 percent, to close at $1.44.
Deadline nears
General Motors has received $15.4 billion in federal loans, and the government deadline to restructure or seek Chapter 11 protection is just over two weeks away.
However, the company must reach concessionary agreements with unions, persuade thousands of bondholders to exchange $27 billion in debt for 10 percent of GM’s stock, cut thousands of dealers, close plants and lay off more salaried workers.
Under Chapter 11 reorganization, a company can stay in operation under court protection while sheds debts and unprofitable assets to emerge in a stronger financial position.
Also Monday, Henderson left open the possibility that GM would move its corporate headquarters out of Detroit.
The company, he said, is looking at everything within its business.
He would not comment about reports about Fiat Group SpA’s interest in getting 80 percent of GM’s European Opel operations, saying that any structure must address the needs of both partners.
Henderson said GM has an urgent need for funding from the German government, so any partner for its European operations would have to be suitable to the government.
Section for the nation’s biggest automaker is becoming more probable with a deadline just over two weeks away, the company’s top executive told reporters Monday.
by the associated press
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