GM CEO says tasks are large to avoid bankruptcy

I / Detroit May 12, 2009, 9:10 IST

Bankruptcy protection for the biggest US automaker is becoming more probable with a deadline just over two weeks away, the company's top executive told reporters today.      

General Motors Corp CEO Fritz Henderson is still 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, but he says a US bankruptcy doesn't necessarily mean that GM would file in other locations.      

"Certainly the task that we have in front of us is large," Henderson said during a conference call to update the company's restructuring efforts. "There is still an opportunity and still a chance for it to be done outside of a court process."      

GM shares fell 16 cents, or 9.9 per cent, to $1.45 in morning trading.      

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. 

But the company must reach concessionary agreements with unions, persuade thousands of bondholders to exchange $27 billion in debt for 10 per cent of GM's stock, cut thousands of dealers, close plants and lay off more salaried workers.