GM chief: Bankruptcy not ruled out
DETROIT — General Motors' new chief executive said Monday there's a greater risk the company will have to reorganize through bankruptcy, because of greater demands from the Obama administration to get debt off its balance sheet.
Fritz Henderson told reporters on a conference call the company would still prefer to restructure outside of court, but the various support mechanisms Obama outlined Monday would provide a better cushion for the company to reorganize under a court-order bankruptcy if necessary.
President Obama said he would give GM additional days to present and make progress on restructuring plans that are expected to go further than what was submitted in February. He also introduced a program that would guarantee warranties of GM and Chrysler vehicles going forward, and would allow people purchasing new cars this year to write off the sales and excise tax of the vehicle.
"We understand what the game plan is," Henderson said. "Whether out of court or in court, either way, they'll be there to support us."
