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GM's Henderson says no decision yet on bankruptcy

Fri, 17 Apr 2009

General Motors CEO Fritz Henderson said today the company has not decided whether to file for bankruptcy protection, but that preparations continue in case such an action is necessary.

"We have until June 1, and if we can't do it between now and June 1 then we do it in bankruptcy," Henderson said during a morning teleconference with journalists.

Still in his first month at the helm after the March 30 departure of CEO Rick Wagoner, Henderson said he wasn't sure who would make the decision.

"This would be one that management and the (U.S.) Treasury would decide together," he said. "The Treasury would be a key player in that decision."

Henderson said he continues to think a bankruptcy is probable.

"Our preference is to accomplish this outside of bankruptcy," he said. "Our overall objective is to accomplish our goals. If it can't be done outside of bankruptcy, then we'll do it inside. But our overall preference is to do it outside of bankruptcy."

GM faces a June 1 deadline from the Obama administration to come up with a plan for viability. So far GM has received $13.4 billion in federal government loans.

By Jamie LaReau and Philip Nussel- Automotive News