4.20.2009

Idea of quick GM bankruptcy filing meets with skepticism

http://www.usatoday.com/money/autos/2009-04-19-gm-quick-bankruptcy-skepticism_N.htm
http://media.nextautos.com/images/GMSinking_640.jpg
DETROIT — General Motors (GM) may be inching toward bankruptcy court, but the theory that GM could get through the process quickly faces increasing skepticism.

On Friday, Fritz Henderson said he came into his new position as GM's CEO three weeks ago believing a bankruptcy filing was more probable than not.

"I feel the same way today," he says. Henderson said GM is working on two scenarios: one that involves bankruptcy and one that doesn't. The plan that does not includes looking at each GM brand to see if it's needed. USA TODAY reported Thursday that dropping Pontiac and GMC was being looked at, along with Hummer, Saab and Saturn, which are already on the block.

GM has resisted filing for bankruptcy court protection, saying the process would be messy and long and would scare away customers. But some in the government have argued that GM could enter a "prepackaged" bankruptcy that could take a few weeks and result in a healthier company.

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