General Motors bankruptcy ‘looks more likely’

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BBC Business News is reporting General Motors chief executive as saying that the firm going into bankruptcy protection was looking more likely.

Fritz Henderson added the task to avoid the measure was “large” – with his comments sending GM shares down 10%.

The US government has given GM a deadline of 1 June to restructure the business successfully if it wishes to gain more emergency loans.

GM has already warned it will probably need to enter bankruptcy protection if it cannot get the additional funding.

“Certainly the task that we have in front of us is large,” Mr Henderson said, but added that there was “still an opportunity and still a chance for it to be done outside of a court process.”

GM is continuing plans to close 2,600 of its 6,246 US dealerships – with a reduction in the network part of major cost-cutting plans at the firm, which hopes to reduce its $44bn (£29bn) debt mountain.

It has also not ruled out moving its base from Detroit. Full story…