GM in "intense" bankruptcy prep

[katty]

moe:
http://www.reuters.com/article/businessNews/idUSTRE5363ZM20090407?feedType=RSS&feedName=businessNews&rpc=23&sp=true

By Chelsea Emery and Soyoung Kim

NEW YORK/DETROIT (Reuters) - General Motors Corp is in "intense" and "earnest" preparations for a possible bankruptcy filing, a source familiar with the company's plans told Reuters on Tuesday.

A plan to split the corporation into a "new" company made up of the most successful units, and an "old" one of its less-profitable units, is gaining momentum and is seen as the most sensible configuration, said another source familiar with the talks.

If the plan goes through, the new GM is expected to assume some previous creditor debt from bankruptcy proceedings, such as secured debt, said the second source, adding that GM bondholders are likely to lose substantial value in bankruptcy.

[MrPerson]

1. Hey GM, I can help with the schedules.