DETROIT – Bankruptcy protection for the nation’s biggest automaker is becoming more probable with a deadline just over two weeks away, the company’s top executive told reporters Monday.
General Motors Corp. CEO Fritz Henderson still is holding out hope that the company can restructure without court protection, but he said 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 to file for bankruptcy, but he said a U.S. 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 17 cents, or 10.6 percent, to close at $1.44.
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.