GM is operating with emergency loans from the U.S. Government. The workforce for the automotive sector appointed by the president Barack Obama, which oversees the rescue, said the company must cut costs and reduce their debts to continue receiving aid.
The labor force appointed by the White House gave GM 60 days to submit a restructuring plan and is trying to determine whether the self can be a viable company.
Quoting sources who were informed about the plans for GM, the New York Times said that the intention was that the company was poised for a quick bankruptcy "surgery."
The newspaper said that preparations are aimed at ensuring that the process is ready if the company fails to reach agreement with its bond holders to redeem some 28,000 million dollars in debt for shares, and the Union of Automobile Industry ( UAW, for its acronym in English).
According to the newspaper, the plan being considered would create a new company that would purchase the assets' good 'GM after the auto request for bankruptcy protection.
Less desirable assets, including brands with less demand, manufacturing plants and obligations of health coverage, will continue at the old company would be liquidated in the course of several years, according to the report.
Treasury officials are examining a potential scenario in which a viable GM and out of bankruptcy protection at a minimum of two weeks, using 5,000 to 7,000 million dollars in federal funding, the Times revealed a person familiar with the matter .
The sources of the Times asked to remain anonymous because they were not authorized to discuss the process. Both GM and Treasury Department officials declined to comment, the newspaper said.
Last week, the CEO of GM said it wanted to restructure the automobile out of court, but is also preparing for a bankruptcy protection.
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