GM Said to Speed Up Bankruptcy Preparations as Board Crafts Savings Goals

[Purveyor]

Source: Bloomberg

By Jeff Green

April 6 (Bloomberg) -- General Motors Corp. is speeding up preparations for a possible bankruptcy filing even as directors seek deeper savings this week to avoid that outcome, people familiar with the plans said.

The bankruptcy readiness focuses on forming a new company from GM’s best assets if necessary, said the people, who asked not to be named because the matter is private. The cost-cut discussions center on how to go beyond GM’s proposal to slash debt by 46 percent and shed 47,000 jobs in 2009, and will include talks with Treasury officials, the people said.

The moves are a response to President Barack Obama’s March 30 rejection of GM’s bid to keep $13.4 billion in federal loans. With bondholders and the United Auto Workers balking at concessions, a push for more savings makes bankruptcy more “probable,” Chief Executive Officer Fritz Henderson has said.

GM’s board met today and yesterday, and more discussions are planned inside GM and with the Obama administration, the people said. Obama gave the biggest U.S. automaker 60 days to restructure, without specifying what steps were needed to stem $82 billion in losses since 2004.

Planning for a court filing was ratcheted up in February as a precaution against a defeat for GM’s bid to keep its U.S. loans, the people said. Detroit-based GM said it prefers to restructure outside bankruptcy court.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=af2zdGPHQ0NU&refer=us

[LiberalFighter]

1. UAW members have made concessions. When will the bondholders?

[excess_3]

2. how much are GM's bonds selling for? .n/t

[blue_onyx]

3. It seems to me

that this 60 day period is meant as preparation time for bankruptcy rather than time to prepare a plan to prevent bankruptcy.